Multiple Choice Question 82 Waterway Industries makes and sells umbrellas. The c

Question

Multiple Choice Question 82 Waterway Industries makes and sells umbrellas. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available Sales commissions $0.60 1.20 0.30 S 5500 riping Advertising Executive salaries Depreciation on office equipment Other 42000 8300 30000 0.35 Expenses are paid in the month incurred. If the company has budgeted to sell 8000 umbrellas in October, how much is the total budgeted variable selling and administrative expenses for October? O $16800 $20567 $105400 $19600 Click if you would like to Show Work for this question: Open Show Work Question Attempts: 0 of 1 used SAVE FOR LATER

Explanation / Answer

Calculate variable selling and administrative expense :

Variable selling and administrative cost per unit = (0.60+1.20+0.30+0.35) = 2.45 per unit

Unit sold = 8000

Variable selling and administrative expense = (2.45*8000) = 19600

so answer is d) $19600

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