The actual selling expenses incurred in March 2014 by DeWitt 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.
(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 salesmanager.

Transcribed Image Text:

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