10 Saints it\'s \'unfortunalBqp Activity#4 ×-t 2 Microsoft Edge New tab O| eztor

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10 Saints it's 'unfortunalBqp Activity#4 ×-t 2 Microsoft Edge New tab O| eztornheducation.com hrntpid.09138986275406029-1509745143869 Exercise 7-6 Selling and Administrative Expense u..,et [L7.7] The budgeted unit sales of Weller Company for the upcoming iscall year are provided below 1st Quarter, 2nd Quarter 3rd Quarter 22,000 4th Quarter 23,000 Budgeted unit sales 25,000 26,000 The company's variable selling and administrative expense per unit is $2 40 Fked selin and administrative expenses include advertising expenses of $10,000 per quarter, executive salaries of $44,000 per quarter, and depreciation of $24,000 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 $6,600 will be paid in the second quarter Required: Prepare the company's selling and administrative expense budget for the upcoming fiscal 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 foxed selling and administrative expenses Total selling and administrative expenses Cash disbursements for selling and administrative expenses References 7-6 Seling and Exercse Administratve Expense Expanded table

Explanation / Answer

PREPARE COMPANY'S SELLING AND ADMINISTRATIVE EXPENSES BUDGET :

1st quarter 2nd quarter 3rd quarter 4th quarter Year Sale units 25000 26000 22000 23000 96000 Variable selling and administrative expenses per unit 2.40 2.40 2.40 2.40 2.40 Total Variable selling and administrative expenses 60000 62400 52800 55200 230400 Fixed selling and administrative expenses Advertising expenses 10000 10000 10000 10000 44000 Executive salaries 44000 44000 44000 44000 176000 Depreciation 24000 24000 24000 24000 96000 Insurance 5000 5000 10000 Property taxes 6600 6600 Total fixed selling and administrative expenses 83000 84600 83000 78000 328600 Total fixed selling and administrative exp 143000 147000 135800 133200 559000 Less: Depreciation (24000) (24000) (24000) (24000) (96000) Cash disbursements for selling and administrative expenses 119000 123000 111800 109200 463000

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