Problem:

Crede Company budgeted selling expenses of $30,000 in January, $35,000 in February, and $40,000 in March. Actual selling expenses were $31,200 in January, $34,525 in February, and $46,000 in March.

Required:

Question 1: Prepare a selling expense report that compares budgeted and actual amounts by month and for the year to date.

Question 2: What is the purpose of the report prepared in "a", and who would be the primary recipient?

Question 3: What would be the likely result of management's analysis of the report?

Note: Please provide through step by step calculations.