Question

Crede Company budgeted selling expenses of $30,400 in January, $35,300 in February, and $40,300 in March. Actual selling expenses were $32,100 in January, $34,770 in February, and $47,300 in March. Prepare a selling expense report that compares budgeted and actual amounts by month and for the year to date.

Answer 1

Crede Company seling expense report

Actual Budgeted Variance

Month Amount in $ Amount in $ Amount in $

January 32,100 30,400 1,700 (U)

February 34,770 35,300 -530 (f)

March 47,300 40,300 7,000 (U)

Year to date 114,170 105,000 9, 170 (U)

The analysis above shows that the selling expense was unfavorable in January and March resulting in an unfavorable position year to date.

Explanation:

The selling expense report that compares budgeted and actual amount is one that details if the expense based on comparison is favorable or unfavorable.

When the actual is lower than the budgeted, the variance is favorable (f) otherwise unfavorable (U).