. 1 E24.5 Prepare flexible selling expense budget 2 Dewitt Company uses flexible budgets to control its selling expenses. Monthly sales are expected 3 to range from $170,000 to $200,000. Variable costs and their percentage relationship to sales are 4 sales commissions 6%, advertising 4%, traveling 3%, and delivery 2%. Fixed selling expenses will 5 consist of sales salaries $35,000, depreciation on delivery equipment $7,000, and insurance on delivery 6 equipment $1,000. 7 8 Instructions 9 Prepare a monthly flexible budget for each $10,000 increment of sales within the relevant range for 110 the year ending December 31, 2014. 11 NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?". 12 13 14 15 DEWITT COMPANY 26 Monthly Selling Expense Flexible Budget 17 For the Year 2014 18 Activity level 19 Sales Revenue $170,000 $180,000 $190,000 $200,000 20 Variable expenses 21 Sales commissions (6%) Value Value Value Value Advertising (4%) Value Value Value Value Traveling (3%) Value Value Value Value 24 Delivery (2%) Value Value Value Value 25 Total variable expenses (15%) ? ? ? ? 26 Fixed expenses 27 Sales salaries Value Value Value Value 28 Depreciation Value Value Value Value 19 Insurance Value Value Value Value 0 Total fixed expenses ? ? 2 ? + 1 -2 Total expenses Value Value Value Value 3 4 5 6 7 8 9