Chapter 22 Budgeting 1041 EX 22-2 Flexible budget for selling and administrative

Question

Chapter 22 Budgeting 1041 EX 22-2 Flexible budget for selling and administrative expenses Cyberware uses flexible budgets that are based on the following data: OBJ.2,4 000 Sales c 12% of sales 22% of sales $4,200 per month plus 15% of sales $16,000 per month 4% of sales $2,500 per month plus 2% of sales Miscellaneous selling expense Office salaries expense . Miscellaneous administrative expense Prepare a flexible selling and administrative expenses budget for March 2014 for sales volumes of $80,000, $100,000, and $120,000. (Use Exhibit 5 as a model.) OBJ. 2, 4 EX 22-3 Static budget vs. flexible budget The production supervisor of the Machining Department for Gilman Company agreed to the following monthly static budget for the upcoming year:

Explanation / Answer

Sales = 80000 100000 120000 Sales commission 9600    [80000*.12] 12000   [100000*.12] 14400 Advertising 17600   [80000*.22] 22000   [100000*.22] 26400 mIscellaneous selling expense 16200   [(80000*.15)+4200] 19200    [(100000*.15)+4200 22200 Office salaries 16000 16000 16000 Office supplies 3200    [80000*.04] 4000 4800 Misc.administrative expense 4100   [(80000*.02)+2500] 4500 4900 Total selling ANd administrative cost 66700 77700 88700

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

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