The actual selling expenses incurred in March 2010 by Trusler Company are as follows.

Variable Expenses

Fixed Expenses

Sales commissions

$9,200

Sales salaries

$34,000

Advertising

7,000

Depreciation

7,000

Travel

5,100

Insurance

1,000

Delivery

3,500

Instructions

(a) Prepare a flexible budget performance report for March using the budget data in, assuming that March sales were $170,000. Expected and actual sales are the same.

(b) Prepare a flexible budget performance report, assuming that March sales were $180,000.

Expected sales and actual sales are the same.

(c) Comment on the importance of using flexible budgets in evaluating the performance of the sales manager.