Weller Company\'s budgeted unit sales for the upcoming fiscal year are provided

Question

Weller Company's budgeted unit sales for the upcoming fiscal year are provided below 1st Quarter 28,000 2nd Quarter 29,000 3rd Quarter 21,000 4th Quarter 26,000 Budgeted unit sales The company's variable selling and administrative expense per unit is $2.70. Fixed selling and administrative expenses include advertising expenses of $13,000 per quarter, executive salaries of $47,000 per quarter, and depreciation of $27,000 per quarter. In addition, the company will make insurance payments of $4,000 in the first quarter and $4,000 in the third quarter. Finally, property taxes of $6,800 will be paid in the second quarter Required Prepare the company's selling and administrative expense budget for the upcoming fiscal year. (Round "Per Unit" answers to 2 decimal places.) Weller Company Selling and Administrative Expense Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Variable selling and administrative expense per unit Variable selling and administrative expense Fixed selling and administrative expenses fixed selling and administrative expenses Total selling and administrative expenses Cash disbursements for selling and administrative expenses

Explanation / Answer

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Budgeted unit sales 28000 29000 21000 26000 104000 Variable selling and administrative expense per unit 2.7 2.7 2.7 2.7 2.7 Variable expense 75600 78300 56700 70200 280800 Fixed selling and administrative expenses: Advertising 13000 13000 13000 13000 52000 Executive salaries 47000 47000 47000 47000 188000 Insurance 4000 0 4000 0 8000 Property taxes 0 6800 0 0 6800 Depreciation 27000 27000 27000 27000 108000 Total fixed expense 91000 93800 91000 87000 362800 Total selling and administrative expenses 166600 172100 147700 157200 643600 Less depreciation 27000 27000 27000 27000 108000 Cash disbursements for selling and administrative expenses 139600 145100 120700 130200 535600

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