E23.6 (LO 2), AN Writing The actual selling expenses incurred in March 2025 by Fallon Company are as follows.
Instructions
Variable Costs
Fixed Costs
Sales commissions
$11,000
Sales salaries
$35,000
Advertising
6,900
Depreciation
7,000
Travel
5,100
Insurance
1,000
Delivery
3,450
a. Prepare a flexible budget performance report for March using the budget data in E23.5, 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 sales manager.