Flexible Budget for Selling and Administrative Expenses Agent Blaze uses flexibl
ID: 2565519 • Letter: F
Question
Flexible Budget for Selling and Administrative Expenses
Agent Blaze uses flexible budgets that are based on the following data:
Prepare a flexible selling and administrative expenses budget for January 2016, for sales volumes of $90,000, $115,000, and $135,000. (Use Exhibit 5 as a model.) Enter all amounts as positive numbers.
Sales commissions 5% of sales Advertising expense 18% of sales Miscellaneous selling expense $2,050 plus 2% of sales Office salaries expense $14,000 per month Office supplies expense 3% of sales Miscellaneous administrative expense $1,450 per month plus 1% of salesExplanation / Answer
Prepare a flexible selling and administrative expenses budget for January 2016, for sales volumes of $90,000, $115,000, and $135,000
Total sales 90000 115000 135000 Variable cost : Sales commissions 4500 5750 6750 Advertising expenses 16200 20700 24300 Miscellaneous selling expense 1800 2300 2700 Office supplies expenses 2700 3450 4050 Miscellaneous administrative expense 900 1150 1350 Total variable cost 26100 33350 39150 Fixed cost : Miscellaneous selling expense 2050 2050 2050 Office salaries expense 14000 14000 14000 Miscellaneous administrative expense 1450 1450 1450 Total fixed cost 17500 17500 17500 Total selling and administrative expenses 43600 50850 56650Related Questions
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