Flexible Budget for Selling and Administrative Expenses Agent Blaze uses flexibl
ID: 2476096 • Letter: F
Question
Flexible Budget for Selling and Administrative Expenses
Agent Blaze uses flexible budgets that are based on the following data:
Total Sales $80,000 $100,000 $120,000
Variable Costs:
Sales Commissions: $ $ $
Advertising Expense ___________ ____________ _____________
Misc. Selling Expense ___________ ____________ _____________
Office Supplies Expense ___________ ____________ _____________
Misc. Administrative Expense ___________ ____________ _____________
Total Variable Cost: $ $ $
Fixed Cost:
Misc. Selling Expense $ $ $
Office Salaries Expense ___________ ____________ _____________
Misc. Administrative Expense ___________ ____________ _____________
Total Fixed Cost $ $ $
Total Selling & Admin Expense $ $ $
Sales commissions 7% of sales Advertising expense 19% of sales Miscellaneous selling expense $1,800 plus 3% of sales Office salaries expense $12,000 per month Office supplies expense 4% of sales Miscellaneous administrative expense $1,300 per month plus 2% of salesExplanation / Answer
Total Sales
$ 80,000.00
$ 1,00,000.00
Variable Costs
Sales commision ( 7% of sales)
$ 5,600.00
$ 7,000.00
Advertising expense
$ 15,200.00
$ 19,000.00
Misc Selling Expense (3% of sales)
$ 2,400.00
$ 3,000.00
OfficeSupplies Expense (4 % of Sales)
$ 3,200.00
$ 4,000.00
Misc Admn. Expenses (2% of Sales)
$ 1,600.00
$ 2,000.00
Total Variable Cost (A)
$ 28,000.00
$ 35,000.00
Fixed Cost
Misc Selling Expense ( $ 1800)
$ 1,800.00
$ 1,800.00
Office Salaries Expense ( $ 12000)
$ 12,000.00
$ 12,000.00
Misc Admn. Expenses ($ 1300 )
$ 1,300.00
$ 1,300.00
Total Fixed Cost (B)
$ 15,100.00
$ 15,100.00
Total Selling & Admin Exp (A + B )
$ 43,100.00
$ 50,100.00
Total Sales
$ 80,000.00
$ 1,00,000.00
Variable Costs
Sales commision ( 7% of sales)
$ 5,600.00
$ 7,000.00
Advertising expense
$ 15,200.00
$ 19,000.00
Misc Selling Expense (3% of sales)
$ 2,400.00
$ 3,000.00
OfficeSupplies Expense (4 % of Sales)
$ 3,200.00
$ 4,000.00
Misc Admn. Expenses (2% of Sales)
$ 1,600.00
$ 2,000.00
Total Variable Cost (A)
$ 28,000.00
$ 35,000.00
Fixed Cost
Misc Selling Expense ( $ 1800)
$ 1,800.00
$ 1,800.00
Office Salaries Expense ( $ 12000)
$ 12,000.00
$ 12,000.00
Misc Admn. Expenses ($ 1300 )
$ 1,300.00
$ 1,300.00
Total Fixed Cost (B)
$ 15,100.00
$ 15,100.00
Total Selling & Admin Exp (A + B )
$ 43,100.00
$ 50,100.00
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