Estimating Flexible Selling Expense Budget and Computing Variances

Estimating flexible selling expense budget and computing variances.Georgia Peaches estimates the following selling expenses next period:

Required:
a.Derive the cost equation (y = a + bx)for selling expenses.(Hint: y = a + bx + cy. )
b.Assume that Georgia actually sells 50,000 units during the period at an average price of $6 per unit.The company had budgeted sales for the period to be: volume,65,000 units;price,$5.50.Calculate the sales price and volume variance.
c.The actual selling expenses incurred during the period were $80,000 fixed and $30,000 variable.Prepare a profit variance analysis for sales revenue and selling expenses.

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