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 Advertising expense Miscellaneous selling expense Office salaries expense Office supplies expense Miscellaneous administrative expense Prepare a flexible selling and administrative expenses budget for January 2016, for sales volumes of $105,000, $130,000, and $160,000. (Use Exhibit 5 as a model.) Enter all amounts as positive numbers 6% of sales 22% of sales $2,350 plus 2% of sales $16,000 per month 3% of sales $1,700 per month plus 1% of sales Agent Blaze Flexible Selling and Administrative Expenses Budget For the Month Ending Jan 31, 2016 Total sales Variable cost: 105,000 $130,000 $160,000 Sales commissions Advertising expense Miscellaneous selling expense Office supplies expense Miscellaneous administrative expense Total variable cost

Explanation / Answer

Answer:-

Agent Blaze Flexible selling & adminitrative expenses budget For the month of Ending January 2016 Particulars Total sales $105000 $130000 $160000 Variable costs:- Sales Commissions 6% of sales 6300 7800 9600 Advertising Expense 22% of sales 23100 28600 35200 Miscellenous selling expense 2% of sales 2100 2600 3200 Office supllies expense 3% of sales 3150 3900 4800 Miscellenous admnistrative expense 1% of sales 1050 1300 1600 Total Variable cost (A) $35700 $44200 $54400 Fixed Costs:- Miscellenous selling expense 2350 2350 2350 Office salaries expense 16000 16000 16000 Miscellenous admnistrative expense 1700 1700 1700 Total Fixed costs (B) $22050 $22050 $22050 Total selling & admintrative expenses C=(A+B) $57750 $66250 $76450

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