Vandel Inc. bases its selling and administrative expense budget on budgeted unit

Question

Vandel Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 1,900 units are planned to be sold in April. The variable selling and administrative expense is $4.80 per unit. The budgeted fixed selling and administrative expense is $35,690 per month, which includes depreciation of $3,400 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the April selling and administrative expense budget should be:

44,810

41,410

32,290

9,120

Explanation / Answer

Selling and Administrative Expense Budget Budgeted unit sales 1900 Variable selling and administrative expense per unit 4.8 Variable selling and administrative expense 9120 Fixed selling and administrative expense 35690 Total selling and administrative expense 44810 Less depreciation 3400 Cash disbursement for selling and administrative expenses 41410 ans B.41410

Related Questions

Navigate

• Browse (All)
• Browse V
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.