Bonita company budgeted selling expenses of $30,900 in january, $35,900 in february, and $40,100 in march. actual selling expenses were $32,400 in january, $35,260 in february, and $47,700 in march. the company considers any difference that is less than 5% of the budgeted amount to be immaterial. prepare a selling expense report that compares budgeted and actual amounts by month and for the year to date.

Varto company has 9,400 units of its sole product in inventory that it produced last year at a cost of $23 each. this year’s model is superior to last year’s, and the 9,400 units cannot be sold at last year’s regular selling price of $42 each. varto has two alternatives for these items: (1) they can be sold to a wholesaler for $8 each, or (2) they can be reworked at a cost of $251,100 and then sold for $34 each. prepare an analysis to determine whether varto should sell the products as is or rework them and then sell them.