Using the information above, calculate the amount of budgeted selling and administrative expenses for the month of February.

Zelia, Inc. has prepared the operating budget for the first quarter of the year. The company forecast
sales of $50,000 in January, $60,000 in February, and $70,000 in March. Variable and fixed expenses
are as follows:
Variable Expenses:
Power cost (20% of sales)
Miscellaneous expenses: (5% of sales)
Fixed Expenses:
Salaries expense: $8000 per month
Rent expense: $5000 per month
Depreciation expense: $1400 per month
Power cost/fixed portion: $500 per month
Miscellaneous expenses/fixed portion: $1000 per month
A) $28,400
B) $33,400
C) $15,000
D) $30,900


D) $30,900

Calculation of total selling and administrative expenses for the month of February:

Business

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