Flexible Budget for Selling and Administrative Expenses Agent Blaze uses flexibl

Question

Flexible Budget for Selling and Administrative Expenses

Agent Blaze uses flexible budgets that are based on the following data:

Prepare a flexible selling and administrative expenses budget for January 2014, for sales volumes of $100,000, $125,000, and $150,000. (Use Exhibit 5 as a model.) Enter all amounts as positive numbers.

Agent Blaze

Flexible Selling and Administrative Expenses Budget

For the Month Ending January 31, 2014

Total sales

$100,000

$125,000

$150,000

Variable cost:

Sales commissions

$  

$  

$  

Advertising expense

  

  

  

Miscellaneous selling expense

  

  

  

Office supplies expense

  

  

  

Miscellaneous administrative expense

  

  

  

Total variable cost

$  

$  

$  

Fixed cost:

Miscellaneous selling expense

$  

$  

$  

Office salaries expense

  

  

  

Miscellaneous administrative expense

  

  

  

Total fixed cost

$  

$  

$  

Total selling and administrative expenses

$  

$  

$  

Sales commissions 7% of sales Advertising expense 15% of sales Miscellaneous selling expense $2,250 plus 3% of sales Office salaries expense $15,000 per month Office supplies expense 4% of sales Miscellaneous administrative expense $1,600 per month plus 2% of sales

Explanation / Answer

Prepare a flexible selling and administrative expenses budget for January 2014, for sales volumes of $100,000, $125,000, and $150,000. (Use Exhibit 5 as a model.) Enter all amounts as positive numbers.

Total sales 100000 125000 150000 Variable costs Sales commissions 7000 8750 10500 Advertising expense 15000 18750 22500 Miscellaneous selling expense 3000 3750 4500 Office supplies expense 4000 5000 6000 Miscellaneous administrative expense 2000 2500 3000 Total variable cost 31000 38750 46500 Fixed cost Miscellaneous selling expense 2250 2250 2250 Office salaries expense 15000 15000 15000 Miscellaneous administrative expense 1600 1600 1600 Total fixed cost 18850 18850 18850 Total selling and administrative expenses 49850 57600 65350

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

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