Kirkland Company combines its operating expenses for budget purposes in a sellin

Question

Kirkland Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2017, the following data are available. 1. Sales: 20,200 units quarter 1; 22,400 units quarter 2. 2. Variable costs per dollar of sales: sales commissions 5%, delivery expense 2%, and advertising 3%. 3. Fixed costs per quarter: sales salaries $10,900, office salaries $6,230, depreciation $4,330, insurance $1,830, utilities $840, and repairs expense $690. 4. Unit selling price: $21. Prepare a selling and administrative expense budget by quarters for the first 6 months of 2017. (List variable expenses before fixed expense.)

Explanation / Answer

Selling and administrative expense budget Quarter 1 Quarter 2 Unit sales 20200 22400 Variable costs: Sales commissions 21210 23520 Delivery expense 8484 9408 Advertising 12726 14112 Total Variable costs 42420 47040 Fixed costs: Sales salaries 10900 10900 Office salaries 6230 6230 Depreciation 4330 4330 Insurance 1830 1830 Utilities 840 840 Repairs expense 690 690 Total Fixed costs 24820 24820 Total costs 67240 71860

Related Questions

Navigate

• Browse (All)
• Browse K
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.