The actual selling expenses incurred in March 2014 by DeWitt Company are as follows.
| Variable Expenses |
|
Fixed Expenses |
| Sales commissions |
|
$14,650 |
|
Sales salaries |
|
$35,023 |
| Advertising |
|
10,433 |
|
Depreciation |
|
7,251 |
| Travel |
|
8,650 |
|
Insurance |
|
1,582 |
| Delivery |
|
3,540 |
|
|
|
(a) Prepare a flexible budget performance report for March, assuming that March sales were $173,000. Variable costs and their percentage relationship to sales are: Sales Commissions 8%, Advertising 6%, Traveling 5%, and Delivery 2%. Fixed selling expenses will consist of Sales Salaries $35,023, Depreciation on Delivery Equipment $7,251, and Insurance on Delivery Equipment $1,582. (List variable costs before fixed costs.)
(b) Prepare a flexible budget performance report, assuming that March sales were $181,300.