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 $8,000 per month plus 12% of sales Office salaries expense Customer support expenses Research and development expense 14% of sales 18% of sales 30,000 per month $14,000 per month plus 20% of sales $30,000 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 Sles Variable ost 400000 $500000 $600000 Sales commissions Advertising expense Misaellaneous administrative expense Customer support expenses Total variable cost Fixed cost: Miscellaneous administrative expense Office salaries expense ustomer support expenses Research and development expense Total fixed cost

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Cloud Productivity Inc Statementshowing Computations Fixed selling and administrative expense Budget For the month ending March 31 Total Sales       400,000.00       500,000.00       600,000.00 Variable cost :   Sales commissions          56,000.00          70,000.00          84,000.00 Advertising expense          72,000.00          90,000.00       108,000.00 Miscellaneous administrative expense          48,000.00          60,000.00          72,000.00 Customer support expense          80,000.00       100,000.00       120,000.00 TotalVariable costs       256,000.00       320,000.00       384,000.00 Fixed expenses :   Miscellaneous administrative expense            8,000.00            8,000.00            8,000.00 Office salaries expense          30,000.00          30,000.00          30,000.00 Customer support expense          14,000.00          14,000.00          14,000.00 Research and development expense          30,000.00          30,000.00          30,000.00 Total Fixed costs          82,000.00          82,000.00          82,000.00 Total selling and administrative expense       338,000.00       402,000.00       466,000.00

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