This Is A Telemarketing Company And Our Standard Is That Call For 450 Of Sales P (1)

This is a telemarketing company and our standard is that call for $450 of sales per hour of telephone calling time.

Commission per call is 10% of dollar sales (additional variable cost). We expect other variable costs to be 45% of revenue. Fixed costs is at $411,500 per month. This month we expected 180 hours of telephone calling time for each of the 40 employees. We had $2,700,000 in revenues. Marketing and administrative cost data for the month are on the table below.

Q) I want to know the difference (variance) between my master budget and my flexible budget for total costs if I consider sales volume as output measure.

Actual | Master Budget

Cost of sales 810,000 | 972,000

Phone time charges 32,200 | 32,400

Delivery services 161,100 | 194,400

Uncollectable Accts 121,500 | 145,800

Other Variable costs 112,700 | 113,400

Fixed costs 409,000 | 411,500

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