The selling and administrative expense budget of Colorado Mining Corporation is
ID: 2594445 • Letter: T
Question
The selling and administrative expense budget of Colorado Mining Corporation is based on budgeted unit sales, which are 4,800 units for February. The variable selling and administrative expense is $5.00 per unit The budgeted fixed selling and administrative expense is $94,630 per month, which ncludes depreciation o S 16,800 per month. The remainder of the fixed se n and administrative expense represents umen cash flows The cash disbursements for selling and administrative expenses on the February selling and administrative expense budget should be $24,000 $77.830 $118,630 $101,830Explanation / Answer
Total variable costs would be=(4800*5)=$24000
Total fixed costs exluding depreciation=(94630-16800)=$77830
Total cash disbursements=(24000+77830)
which is equal to
=$101830