T\'s t\'s inc combines its operating expenses for budget purposes in a selling a

Question

T's t's inc combines its operating expenses for budget purposes in a selling and administrative expenses budget. For the last 6 months of 2016, the folowwing dtata are avaiable.

1. sales 33,000 units in quarter 3, 53,000 units in quarter 4

2. variable costs per dollar of sales; sales commissions 2.75%; delivery expenses 3.50%; and advertising 4.25%

3. fixed cosots per quarter; sales saleries $15, 500; office salaries $3,750; depreciation $4,200; insurance $2300; utilities $700, and reparis $140

4. unit selling price; $26. 50

question. Prepare a selling and administrative expenses budget by quarter for the last 6 months of 2016

Explanation / Answer

T's t's inc Selling and Administrative Expense Budget For the Six Months Ending December 31, 2016 Quarter 3 Quarter 4 Six Months Budget sales in units $     33,000.00 $    53,000.00 $     86,000.00 Variable Expenses Sales Commission $     24,048.75 $    38,623.75 $     62,672.50 Delivery Expenses $     30,607.50 $    49,157.50 $     79,765.00 Advertising Expenses $     37,166.25 $    59,691.25 $     96,857.50 Total Variable expenses $     91,822.50 $ 147,472.50 $   239,295.00 Fixed Expenses Sales Salaries $     15,500.00 $    15,500.00 $     31,000.00 Office Salaries $       3,750.00 $      3,750.00 $       7,500.00 Depreciation $       4,200.00 $      4,200.00 $       8,400.00 Insurance $       2,300.00 $      2,300.00 $       4,600.00 Utilities $           700.00 $          700.00 $       1,400.00 Repairs $           140.00 $          140.00 $           280.00 Total Fixed Expenses $     26,590.00 $    26,590.00 $     53,180.00 Total Selling & Administrative Expenses $   118,412.50 $ 174,062.50 $   292,475.00

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

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