The actual selling expenses incurred in March 2011 by Zeller Company are as follows.

Instructions
(a) Prepare a flexible budget performance report for March using the budget data in E10-5, 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 salesmanager.

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Sales commissions Advertising Travel Delivery Variable ExpensesFixed $9,200 7,000 5,100 3,500 Sales salaries Depreciation Insurance $34,000 7,000 1,000