Question

Crede Company budgeted selling expenses of $30,300 in January, $34,500 in February, and $40,300 in March. Actual selling expenses were $31,300 in January, $34,190 in February, and $48,300 in March. The company considers any difference that is less than 5% of the budgeted amount to be immaterial. Prepare a selling expense report that compares budgeted and actual amounts by month and for the year to date.

Answer 1

Answer:

    Crede Company  Selling expense report

By Month  

Month      Budget      Actual expenses      Difference

January    $30,300         $ 31,300                 $1,000 U  

February  $34,500         $ 34,190                  $310 F  

March       $40,300         $ 48,300                $8,000 U

Year to date

Budget      Actual expenses         Difference

$30,300        $31,300                    $1,000 U

$64,800        $65,490                    $690 U

$ 105,100       $113,790                    $8,690 U