Crane Co. uses flexible budgets to control its selling expenses. Monthly sales are expected to be...

Transcribed Image Text:

Crane Co. uses flexible budgets to control its selling expenses. Monthly sales are expected to be from $302,000 to $362,000. Variable costs and their percentage relationships to sales are: Sales commissions 5% Advertising 4% Traveling 7% Delivery 1% Fixed selling expenses consist of sales salaries $42,000 and depreciation on delivery equipment $12,000. The actual selling expenses incurred in February, 2022, by Crane are as follows: Sales commissions Advertising $17,300 12,070 Traveling 23,840 Delivery 2,410 Fixed selling expenses consist of sales salaries $43,700 and depreciation on delivery equipment $12,000. Prepare a flexible budget performance report assuming that February sales were $332,000. (List variable expenses before fixed expenses.) Activity level Advertising Total Expenses Sales Sales Salaries Insurance Depreciation Delivery Traveling Total Fixed Expenses Total Variable Expenses Sales Commissions Variable Expenses $ Budget +A $ +A $ $ $ Actual Favorable (F) Unfavorable (U) Not Applicable (NA) +A $ $ > > > > > > > Crane Co. uses flexible budgets to control its selling expenses. Monthly sales are expected to be from $302,000 to $362,000. Variable costs and their percentage relationships to sales are: Sales commissions 5% Advertising 4% Traveling 7% Delivery 1% Fixed selling expenses consist of sales salaries $42,000 and depreciation on delivery equipment $12,000. The actual selling expenses incurred in February, 2022, by Crane are as follows: Sales commissions Advertising $17,300 12,070 Traveling 23,840 Delivery 2,410 Fixed selling expenses consist of sales salaries $43,700 and depreciation on delivery equipment $12,000. Prepare a flexible budget performance report assuming that February sales were $332,000. (List variable expenses before fixed expenses.) Activity level Advertising Total Expenses Sales Sales Salaries Insurance Depreciation Delivery Traveling Total Fixed Expenses Total Variable Expenses Sales Commissions Variable Expenses $ Budget +A $ +A $ $ $ Actual Favorable (F) Unfavorable (U) Not Applicable (NA) +A $ $ > > > > > > >