O ezto.mheducation.com/hm.tpx?-0.6324095414069612 1522355933099 Exercise 7-6 Sel

Question

O ezto.mheducation.com/hm.tpx?-0.6324095414069612 1522355933099 Exercise 7-6 Selling and Administrative Expense Budget LO7-7 The budgeted unit sales of Weller Company for the upcoming fiscal year are provided below Budgeted unit sales st Quarter 2nd Quarter 3rd Quarter4th Quarter 27,000 28,000 20,000 25,000 The company's variable selling and administrative expense per unit is $2.60. Fixed selling and administrative expenses include advertising expenses of $12,000 per quarter, executive salaries of $47,000 per quarter, and depreciation of $26,000 per quarter. In addition, the company will make insurance payments of $5,000 in the first quarter and $5,000 in the third quarter. Finally, property taxes of $8800 will be paid in the second quarter Required: Prepare the comany's sling a administratve expense budget for the upcoming iscal year (Round Variable cost answers to 2 decimal places.) Weller Company Selling and Administrative Expense Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Fixed selling and administrative expenses Total fixed selling and administrative expenses Total selling and administrative expenses Cash disbursements for selling and administrative expenses References Type here to search

Explanation / Answer

Weller Company Selling and Administrative Expense Budget 1 Quarter 2 Quarter 3 Quarter 4 Quarter Year Budgeted unit sales 27000 28000 20000 25000 100000 Variable sellingand admin. Expense per unit 2.6 2.6 2.6 2.6 2.6 Variable expense, fixed selling and admin expense 70200 72800 52000 65000 260000 Advertising 12000 12000 12000 12000 48000 Executive Salaries 47000 47000 47000 47000 188000 Insurance 5000 5000 10000 Property taxes 8800 8800 Depreciation 26000 26000 26000 26000 104000 Total fixed expenses 90000 93800 90000 85000 358800 Total selling and administrative expense 160200 166600 142000 150000 618800 Less depreciation 26000 26000 26000 26000 104000 Cash disbursements for selling and administrative expenses 134200 140600 116000 124000 514800

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