Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $168,200 to $201,80 Variable costs and their percentage relationship to sales are sales commissions 7%, advertising 6%, travel 3%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,300, depreciation on delivery equipment $6,800, and insurance on delivery equipment $1,400. Prepare a monthly selling expense flexible budget for each $11,200 increment of sales within the relevant range for the year ending December 31, 2020. (List variable costs before fixed costs.)
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
![Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $168,200 to $201,800.
Variable costs and their percentage relationship to sales are sales commissions 7%, advertising 6%, travel 3%, and delivery 2%. Fixed
selling expenses will consist of sales salaries $35,300, depreciation on delivery equipment $6,800, and insurance on delivery
equipment $1,400.
Prepare a monthly selling expense flexible budget for each $11,200 increment of sales within the relevant range for the year ending
December 31, 2020. (List variable costs before fixed costs.)
>
>
>
>
>
$
LA
FALLON COMPANY
Monthly Selling Expense Flexible Budget
For the Year 2020
LA
tA
A
LA
LA
[](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F51038f17-8323-46ef-a18b-b108bad15422%2Fe7927c6a-47f3-47b8-9752-007f8fc24144%2Fhhrwzzo_processed.png&w=3840&q=75)
![Advertising
Activity Level
Depreciation
Delivery
Fixed Expenses
Insurance
Sales
Sales Commissions
Sales Salaries
Total Expenses
Total Fixed Expenses
Total Variable Expenses
Travel
Variable Expenses
>
LA
LA
$
LA
LA
$
$
LA
$
$
LA
LA
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F51038f17-8323-46ef-a18b-b108bad15422%2Fe7927c6a-47f3-47b8-9752-007f8fc24144%2F3soa8b9_processed.png&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)