Flexible Budget for Selling and Administrative Expenses Fuller Enterprises uses
ID: 2560074 • Letter: F
Question
Flexible Budget for Selling and Administrative Expenses Fuller Enterprises uses flexible budgets that are based on the following data: Advertising expense Customer support expense Office salaries expense Miscellaneous administrative expense Research and development expense 7% of sales 17% of sales $1,900 plus 3% of sales $13,000 per month $2,100 plus 2% of sales $1,350 per month Prepare a flexible selling and administrative expenses budget for July for sales volumes of $85,000, 105,000, and $130,000. (Use Exhibit 5 as a model.) Enter all amounts as positive numbers. FULLER ENTERPRISES Flexible Selling and Administrative Expenses Budget For the Month Ending July 31 Total sales Variable cost: $85,000 $105,000 $130,000 Sales commissions Advertising expense Customer support expense Total variable cost Fixed cost: Customer support expense Office salaries expense Research and development e Total fixed cost Total selling and administrative expenses FeedbackExplanation / Answer
Fuller Enterprises
Flexible selling & Administrative budget
For the month ending July 31
Total Sales
$85000
$105000
$130000
Variable Costs:
Sales Commission (7%)
5950
7350
9100
Advertising Expense (17%)
14450
17850
22100
Customer Support Expense (3%)
2550
3150
3900
Miscellaneous Administrative Expense (2%)
1700
2100
2600
Total Variable Cost
24650
30450
15600
Fixed Cost:
Customer Support Expense
1900
1900
1900
Office salaries Expense
13000
13000
13000
Miscellaneous Administrative Expense
2100
2100
2100
Research & Development Expense
1350
1350
1350
Total Fixed Cost
18350
18350
18350
Total Selling & Administrative Expense(Total Variable cost + Total Fixed Cost)
43000
48800
33950
Total Sales
$85000
$105000
$130000
Variable Costs:
Sales Commission (7%)
5950
7350
9100
Advertising Expense (17%)
14450
17850
22100
Customer Support Expense (3%)
2550
3150
3900
Miscellaneous Administrative Expense (2%)
1700
2100
2600
Total Variable Cost
24650
30450
15600
Fixed Cost:
Customer Support Expense
1900
1900
1900
Office salaries Expense
13000
13000
13000
Miscellaneous Administrative Expense
2100
2100
2100
Research & Development Expense
1350
1350
1350
Total Fixed Cost
18350
18350
18350
Total Selling & Administrative Expense(Total Variable cost + Total Fixed Cost)
43000
48800
33950
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