lexible Budget for Selling and Administrative Expenses gent Blaze uses flexible

Question

lexible Budget for Selling and Administrative Expenses gent Blaze uses flexible budgets that are based on the following data: Sales commissions Advertising expense Miscellaneous selling expense Office salaries expense Office supplies expense Miscellaneous administrative expense Prepare a flexible selling and administrative expenses budget for January 2016, for sales volumes of $90,000, $115,000, and $135,000. (Use 5 as a model.) Enter all amounts as positive numbers 7% of sales 25% of sales $2,050 plus 3% of sales $14,000 per month 4% of sales $1,450 per month plus 2% of sales Agent Blaze Flexible Selling and Administrative Expenses Budget Total sales Variable cost: $90,000 $115,000 $135,000 Sales commissions Advertising expense Miscellianeous selling expense Office supplies expense Miscellaneous administrative expense Total variable cost Foxed cost

Explanation / Answer

Flexible selling and administrative expense budget Total sales 90000 115000 135000 Variable cost: Sales commissions (7% of sales) 6300 8050 9450 Advertising expense (25% of sales) 22500 28750 33750 Miscellaneous selling expenses (3% of sales) 2700 3450 4050 Office supplies expense (4% of sales) 3600 4600 5400 Miscellaneous administrative expenses (2% of sales) 1800 2300 2700 Total variable cost 36900 47150 55350 Fixed cost: Miscellaneous selling expenses 2050 2050 2050 Office salaries expense 14000 14000 14000 Miscellaneous administrative expenses 1450 1450 1450 Total fixed cost 17500 17500 17500 Total selling and administrative expense 54400 64650 72850

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