Trusler Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $170,000 to $200,000. Variable costs and their percentage relationship to sales are: Sales Commissions 5%, Advertising 4%, Traveling 3%, and Delivery 2%. Fixed selling expenses will consist of Sales Salaries $34,000, Depreciation on Delivery Equipment $7,000, and Insurance on Delivery Equipment $1,000.
Instructions
Complete the monthly flexible budget for each $10,000 increment of sales within the relevant range for the year ending December 31, 2012.Monthly Flexible Selling Expense Budget.
For the Year 2012
- Activity Level
- Sales
- Variable Costs
- Sales Commision
- Advertising
- Traveling
- Delivery
- Total Variable Expenses
- Fixed Costs
- Depreciation
- Insurance
- Total fixed expenses