his Question: 3 pts 13 of 49 (0 complete) ? This Test: 150 Pearl Inc has prepare

Question

his Question: 3 pts 13 of 49 (0 complete) ? This Test: 150 Pearl Inc has prepared the operating budget for the first quarter of the year. The company forecast sales of $40,000.00 in January 550,000.00 in February, and $60,000.00 in March. Variable and fixed selling and administrative expenses are as follows: Variable Expenses Power cost (20% of sales) Miscellaneous expenses (10% of sales) Fixed Expenses Salaries expense $10,000.00 per month Rent expense: $4,000.00 per month Depreciation expense: $1,000.00 per month Power cost/fixed portion: $800.00 per month Miscellaneous expenses/fixed portion: $1,000.00 per month Calculate total budgeted selling and administrative expenses for the month of January O A. $31,800.00 O B. $34,800.00 O C. $28,800.00 OD. $12,000.00

Explanation / Answer

The answer is C --> $28,800

Calculation of Budgeted selling and adminstrative expenses for the month of Januar

Budgeted Selling and adminstrative cost Variable cost: Power cost ($40,000 x 20%) $8,000 Miscellaneous expenses ($40,000 x 10%) $4,000 $12,000 Fixed cost: Salaries expenses $10,000 Rent expenses $4,000 Depreciation $1,000 Power cost $800 Miscellaneous expenses $1,000 $16,800 Total Budgeted expenses $28,800

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

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