Question

Exercise 22-2

Crede Company budgeted selling expenses of $29,900 in January, $34,200 in February, and $39,400 in March. Actual selling expenses were $31,200 in January, $33,520 in February, and $46,500 in March.

Prepare a selling expense report that compares budgeted and actual amounts by month and for the year to date.

CREDE COMPANY
Selling Expense Report
For the Quarter Ending March 31
By Month
Year-to-Date
Month
Budget
Actual
Difference
Budget
Actual
Difference
January
$
$
$

Favorable
Unfavorable
Neither favorable nor unfavorable
$
$
$

Favorable
Unfavorable
Neither favorable nor unfavorable
February
$
$
$

Favorable
Unfavorable
Neither favorable nor unfavorable
$
$
$

Favorable
Unfavorable
Neither favorable nor unfavorable
March
$
$
$

Favorable
Unfavorable
Neither favorable nor unfavorable
$
$
$

Favorable
Unfavorable
Neither favorable nor unfavorable

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Answer 1

Solution:

Selling Expenses Report
For the quarter ended March 31
Particulars	January	February	March	Year to date
Budgeted selling expenses	$29,900.00	$34,200.00	$39,400.00	$103,500.00
Actual selling expenses	$31,200.00	$33,520.00	$46,500.00	$111,220.00
Difference in budgeted and acutal expenses	-$1,300.00	$680.00	-$7,100.00	-$7,720.00
Favorable/Unfavorable / Neither favorable nor unfavorable	Unfavourable	Favourable	Unfavourable	Unfavourable