Prepare a flexible budget performance report for March, assuming that March sales were $165,200. Variable costs and their percentage relationship to sales are sales commissions 7%, advertising 6%, traveling 4%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,156, depreciation on delivery equipment $6,792, and insurance on delivery equipment $1,242.(List variable costs before fixed costs.)
DEWITT COMPANY
Selling Expense Flexible Budget Report
For the Month Ended March 31, 2014 |
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| Exercise 22-6
The actual selling expenses incurred in March 2014 by DeWitt Company are as follows.
| Variable Expenses |
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Fixed Expenses |
| Sales commissions |
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$12,368 |
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Sales salaries |
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$35,156 |
| Advertising |
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9,985 |
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Depreciation |
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6,792 |
| Travel |
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6,608 |
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Insurance |
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1,242 |
| Delivery |
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3,380 |
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