Fallon company uses flexible budgets to control its selling


Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $165,100 to $205,600. 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 $34,800, depreciation on delivery equipment $6,700, and insurance on delivery equipment $1,600.

Prepare a monthly flexible budget for each $13,500 increment of sales within the relevant range for the year ending December 31, 2017.

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Financial Management: Fallon company uses flexible budgets to control its selling
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