Ng Inc. bases its marketing and administrative expense budget on the number of units sold. The variable marketing and administrative expense is $4.30 per unit. The budgeted fixed marketing and administrative expense is $30,240 per month, which includes depreciation of $3,510. The remainder of the fixed marketing and administrative expense represents current cash flows. The sales budget shows 2,700 units are planned to be sold in April.Required:Prepare a schedule showing total marketing and administrative expenses for April, as well as the cash disbursements for marketing and administrative expenses.
What will be an ideal response?
| April | |||
| Budgeted unit sales | 2,700 | ||
| Variable marketing and administrative expense per unit | $ | 4.30 | |
| Variable marketing and administrative expense | $ | 11,610 | |
| Fixed marketing and administrative expense | 30,240 | ||
| Total marketing and administrative expense | 41,850 | ||
| Less depreciation | 3,510 | ||
| Cash disbursements for marketing and administrative expenses | $ | 38,340 | |
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