Flexible Budget for Selling and Administrative Expenses for a Service Company Cl

Question

Flexible Budget for Selling and Administrative Expenses for a Service Company Cloud Productivity Inc. uses flexible budgets that are based on the following data: Sales commissions Advertising expense Miscellaneous administrative expense Office salaries expense Customer support expenses Research and development expense 14% of sales 20% of sales $7,500 per month plus 12% of sales $30,000 per month $12,000 per month plus 20% of sales $31,000 per month Prepare a flexible selling and administrative expenses budget for March for sales volumes of $400,000, $500,000, and $600,000. (Use Exhibit 5 as a model.) Cloud Productivity Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending March 31 Total sales Variable cost: $400000 $500000 $600000 Total variable cost Fixed cost:

Explanation / Answer

Cloud Productivity Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending March 31 Total sales $ 400000 500000 600000 Variable cost: Sales commissions (14% of sales) 56000 70000 84000 Advertising expense (20% of sales) 80000 100000 120000 Miscellaneous administrative expense (12% of sales) 48000 60000 72000 Customer support expenses (20% of sales) 80000 100000 120000 Total variable cost 264000 330000 396000 Fixed cost: Miscellaneous administrative expense 7500 7500 7500 Office salaries expense 30000 30000 30000 Customer support expenses 12000 12000 12000 Research and development expense 31000 31000 31000 Total fixed cost 80500 80500 80500 Total selling and administrative expenses $ 344500 410500 476500

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

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