Bonkowski Corporation makes one product and has provided the following informati

Question

Bonkowski Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations Budgeted selling price per unit Budgeted unit sales (all on credit): 97 January February March April 10,000 12,000 13,300 15,200 Raw materials requirement per unit of output Raw materials cost Direct labor requirement per unit of output 4 pounds $ 1.00 per pound 2.5 direct labor-hours per direct labor- hour per direct labor- hour Direct labor wage rate $ 23.00 Predetermined overhead rate (all variable) $ 9.00 Variable selling and administrative expense$ 3.10 per unit sold Fixed selling and administrative expense $70,000 per month

Explanation / Answer

Calculate estimated selling and administrative expenses :

Selling and administrative expenses = Variable selling and administrative exp+Fixed selling and administrative expenses

                                                     = (12000*3.10+70000)

Selling and administrative expenses = 107200

so answer is c) $107200

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