The actual selling expenses incurred in March 2022 by Fallon Company are as follows.

Instructions

a. Prepare a flexible budget performance report for March using the budget data in E16.5, assuming that March sales were $170,000.

b. Prepare a flexible budget performance report, assuming that March sales were $180,000.

c. Comment on the importance of using flexible budgets in evaluating the performance of the sales manager.

Prepare flexible budget.

Transcribed Image Text:

Variable Expenses Fixed Expenses Sales $11,000 Sales $35,000 commissions salaries Advertising 6,900 Depreciation 7,000 Travel 5,100 Insurance 1,000 Delivery 3,450