Flexible Budget for Selling and Administrative Expenses Agent Blaze uses flexibl

Question

Flexible Budget for Selling and Administrative Expenses Agent Blaze uses flexible budgets that are based on the following data: Sales commissions 6% of sales Advertising expense 18% of sales Miscellaneous selling expense $1,800 plus 3% of sales Office salaries expense $12,000 per month Office supplies expense 4% of sales Miscellaneous administrative expense $1,300 per month plus 2% of sales Hide Prepare a flexible selling and administrative expenses budget for January 2014, for sales volumes of $80,000, $100,000, and $120,000. (Use Exhibit 5 as a model.) Enter all amounts as positive numbers. Agent Blaze Flexible Selling and Administrative Expenses Budget For the Month Ending January 31, 2014 Total sales $80,000 $100,000 $120,000 Variable cost: Sales commissions $ $ $ Advertising expense Miscellaneous selling expense Office supplies expense Miscellaneous administrative expense Total variable cost $ $ $ Fixed cost: Miscellaneous selling expense $ $ $ Office salaries expense Miscellaneous administrative expense Total fixed cost $ $ $ Total selling and administrative expenses $ $ $

Explanation / Answer

1) Preparation of Flexible Selling & Administrative Expenses Budget for the month Ending January 31,2014 :

Particulars $80,000 $100,000 $120,000 Variable costs : Sales Commission $4,800 $6,000 $7,200 Advertising Expense $14,400 $18,000 $21,600 Miscellaneous Selling Expense $2,400 $3,000 $3,600 Office Supplies Expense $3,200 $4,000 $4,800 Miscellaneous Administrative Expense $1,600 $2,000 $2,400 Total Variable costs $26,400 $33,000 $39,600 Fixed Costs : Miscellaneous Selling Expense $1,800 $1,800 $1,800 Office Salaries Expense $12,000 $12,000 $12,000 Miscellaneous Administrative Expense $1,300 $1,300 $1,300 Total Fixed Costs $15,100 $15,100 $15,100 Total Selling and Administrative Expenses $41,500 $48,100 $54,700

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

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