Variable Expenses Sales commissions Advertising Travel Delivery Fixed Expenses $10,870 Sales salaries 10,080 Depreciation 6,680 Insurance 3,450 Budget $35,500 7,500 1,400 (a) Prepare a flexible budget performance report for March, assuming that March sales were $167,000. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 6%, traveling 4%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,500, Depreciation on delivery equipment $7,500, and insurance on delivery equipment $1,400. (List variable costs before fixed costs.) FALLON COMPANY Selling Expense Flexible Budget Report For the Month Ended March 31, 2017 Actual Difference Favorable Unfavorable Neither Favorable nor Unfavorable