The company’s variable selling and administrative expense per unit is $2.30. Fix
ID: 2540148 • Letter: T
Question
The company’s variable selling and administrative expense per unit is $2.30. Fixed selling and administrative expenses include advertising expenses of $9,000 per quarter, executive salaries of $44,000 per quarter, and depreciation of $23,000 per quarter. In addition, the company will make insurance payments of $4,000 in the first quarter and $4,000 in the third quarter. Finally, property taxes of $8,600 will be paid in the second quarter.
Prepare the company’s selling and administrative expense budget for the upcoming fiscal year. (Round "Variable cost" answers to 2 decimal places.)
The budgeted unit sales of Weller Company for the upcoming fiscal year are provided below:Explanation / Answer
Prepare the company’s selling and administrative expense budget for the upcoming fiscal year.
First quarter second quarter third quarter Fourth quarter Year Unit sales 24000 25000 21000 22000 92000 Variable selling and administrative expense per unit 2.30 2.30 2.30 2.30 2.30 Variable Selling and administrative expense 55200 57500 48300 50600 211600 Fixed selling and administrative expenses Advertising expenses 9000 9000 9000 9000 36000 Executive salaries 44000 44000 44000 44000 176000 Depreciation 23000 23000 23000 23000 92000 Insurance payment 4000 4000 8000 Property taxes 8600 Total fixed selling and administrative expense 80000 84600 80000 76000 320600 Total Selling and administrative expense 135200 142100 128300 126600 532200 Less; Depreciation (23000) (23000) (23000) (23000) (92000) Cash disbursement on selling and administrative expense 112200 119100 105300 103600 440200