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.

                                     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).

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