This Question: 3 pts 5 of 39 (34 complete) This Test: 125 pts possible Question

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This Question: 3 pts 5 of 39 (34 complete) This Test: 125 pts possible Question Help * Kapital Inc. has prepared the operating budget for the first quarter of 2015. They forecast sales of $40,000 in January, $50,000 in February, and $60,000 in March. Variable and fixed expenses are as follows: variable. Power cost (40% of Sales) Miscellaneous expenses: (10% of Sales) Fixed Salary expense: $8,000 per month Rent expense $4,000 per month Depreciation expense: $1,000 per month Power cost/txed portion $500 per month Miscellaneous expensesmxed portion: $1,000 per month Calculate total selling and administrative expenses for the month of January O A. S34,500 OB. S20.000 O C. S39,500 O D. $44,500

Explanation / Answer

Particulars $ Variable Power cost (40000*40%) 16000 Miscellaneous Expenses (40000*10%) 4000 Fixed Salary Expense 8000 Rent Expense 4000 Depreciation Expense 1000 Power cost/Fixed Portion 500 Miscellaneous Expense/Fixed Portion 1000 Selling And Administrative Expense 34500 Therefore, the right answer is option (a) $ 34,500

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