A manufacturing company's budgeted income statement includes the following data
Data extracted from budgeted income statement Mar Apr May Jun
Sales revenue $130,000 $80,000 $130,000 $120,000
Commission expense (15% of sales) 19,500 12,000 19,500 18,000
Salaries expense 33,000 33,000 33,000 33,000
Miscellaneous expense-5% of sales 6,500 4,000 6,500 6,000
Rent expense 3,600 3,600 3,600 3,600
Utilities expense 2,300 2,300 2,300 2,300
Insurance expense 2,600 2,600 2,600 2,600
Depreciation expense 4,200 4,200 4,200 4,200
The budget assumes that 60% of commission expenses are paid in the month they are incurred and the remaining 40% are paid one month later. In addition, 50% of salaries expenses are paid in the same month, and the remaining 50% are paid one month later. Miscellaneous expenses, rent expense, and utilities expenses are assumed to be paid in the same month in which they are incurred. Insurance has been paid in advance for the year on January 1.
Calculate total budgeted cash payments for selling and administrative expenses for the month of April.
A) $52,000
B) $60,500
C) $57,900
D) $64,700
C .C) Payment for selling and administrative expenses for the month of April:
You might also like to view...
Review of the audit log is an example of which of the following types of security control?
A. Corrective. B. Governance. C. Preventive. D. Detective.
A retailer is looking for a means of describing consumer behavior that is preferable to shoppers' ages. One such technique is _____
a. the social class structure b. outshopping c. perceived risk d. the traditional family life cycle
Define channel power and explain how it can lead to channel conflict. How does it affect vertical marketing systems?
What will be an ideal response?
John prefers to work alone on projects and avoids tasks that require him to work in a group with other employees in his organization. He believes in self-reliance and gives precedence to his own ideas and values over the beliefs of others. In the context of the dimensions of national culture identified by Geert Hofstede, John is likely to score high on _____.
A. gender egalitarianism B. individualism C. femininity D. in-group collectivism