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(Solution Download) The actual selling expenses incurred in March 2014 by DeWitt Company are as follows. Variable Expens


 

 

 

 

 

 

 

The actual selling expenses incurred in March 2014 by DeWitt

 

Company are as follows.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Expenses

 

 

Fixed Expenses

 

Sales commissions$13,048Sales salaries$35,142
Advertising10,498Depreciation7,000
Travel6,956Insurance1,869
Delivery3,580

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*(a)

 

Prepare a flexible budget performance report for March, assuming

 

that March sales were $173,900. Variable costs and their percentage

 

relationship to sales are sales commissions 7%, advertising 6%,

 

traveling 4%, and delivery 2%. Fixed selling expenses will consist

 

of sales salaries $35,142, depreciation on delivery equipment

 

$7,000, and insurance on delivery equipment $1,869.

 

(List variable costs before fixed

 

costs.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DEWITT COMPANY

 

Selling Expense Flexible Budget Report

 

For the Month Ended March 31, 2014

 

 

Difference

 

 

Budget

 

 

Actual

 

 

Favorable (F)

 

Unfavorable (U)

 

Neither Favorable

 

nor Unfavorable (N)

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

 

 

$

 

 

$

 

 

 

 


 


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