The actual selling expenses incurred in March 2012 by Russell Company are as follows.

                

Instructions
  (a) Prepare a flexible budget performance report for March using the budget data in E24-5, assuming that March sales were $170,000. Expected and actual sales are the same.
  (b) Prepare a flexible budget performance report, assuming that March sales were $180,000. Expected sales and actual sales are the same.
  (c) Comment on the importance of using flexible budgets in evaluating the performance of the sales manager.