From the following details, provided by a merchandising company, prepare the selling and administrative expenses budget for the first quarter of the next year
Rent Expense $8,000 per month
Depreciation Expense $ 3,500 per month
Insurance Expense $1,250 per month
Miscellaneous Expense 2% of sales, paid as incurred
Commissions Expense 10% of sales
Salaries Expense $7,000 per month
Jan Feb March
Sales $50,000 $65,000 $80,000
What will be an ideal response
Selling and Administrative Expenses Budget
For First Quarter
Jan Feb March
Variable Expenses:
Commissions Expense (10% of sales) $5,000 $6,500 $8,0000
Miscellaneous Expense (2% of sales) $1,000 $1,300 $1,600
Total Variable Expenses $6000 $7,800 $9,600
Fixed Expense:
Salaries Expenses $7,000 $7,000 $7,000
Rent Expenseses 8,000 8,000 8,000
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According to U.S. trade law, which of the following is/are illegal in American markets?
a. dumping only b. export subsidies only c. dumping and export subsidies d. neither dumping nor export subsidies
Indicate whether each of the following items is true or false._____ a) Many successful corporations do not pay dividends to their stockholders._____ b) Careful study of the financial statements will give investors the ability to predict future movements in the market price of a corporation's stock._____ c) The chief executive officer (CEO) of a corporation is usually not also a member of the board of directors._____ d) Dismissing an incompetent manager can be complicated when a company is experiencing entrenched management. _____ e) The number of shares to purchase in order to attain "significant influence" of a corporation can readily be determined from the financial statements.
What will be an ideal response?
A corporation whose shares are all held by a single person is a close corporation
Indicate whether the statement is true or false
Use the following labor budget data for Roy & Miller Accounting, LLP. Partner Salaries$400,000 Partner Benefits (40%) 160,000 Total Partner Compensation$560,000 Staff Accountant Salaries$600,000 Staff Benefits (40%) 240,000 Total Staff Compensation$840,000 The budgeted overhead cost for the year is $1,260,000. The company has estimated that one-third of the budgeted overhead cost is incurred to support the firm's two partners, and two-thirds goes to support the staff accountants. The current audit bid for Monoco Industries requires $18,000 in direct partner professional labor, $30,000 in direct staff accountant professional labor, $5,000 in direct material.What is the total budgeted compensation for both partners and staff accountants?
A. $600,000 B. $1,400,000 C. $1,000,000 D. $1,160,000 E. None of these answers is correct.