Skeete Inc. bases its selling and administrative expense budget on the number of

Question

Skeete Inc. bases its selling and administrative expense budget on the number of units sold. The variable selling and administrative expense is $4.70 per unit. The budgeted fixed selling and administrative expense is $30,280 per month, which includes depreciation of $3,550. The remainder of the fixed selling and administrative expense represents current cash flows. The sales budget shows 2,300 units are planned to be sold in November.

Required: In the selling and administrative expense budget for November, calculate the amount of selling and administrative expense and calculate the amount cash disbursements for selling and administrative expenses.

Total Selling and Administrative Expense :

Cash disbursment for selling and administrative expenses :

Explanation / Answer

Answer:-

Skeete Inc. Selling & Administrative Expense Budget Particluars November Budgeted unit sales (a) 2300 Variable selling and administrative expense per unit (b) 4.70 Total Variable selling and administrative expense per (c=a*b) 10810 Fixed selling and administrative expense Other current cas flows $ 30280-3550=26730 Depreciation $ 3550 Total Fixed selling and administrative expense (d) $ 30280 Total selling and administrative expense (e=c+d) $ 41090 Less:- Depreciation Expense $ 3550 Cash disbursements for selling and administrative expense $ 37540

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