Wala Inc. bases its selling and administrative expense budget on the number of units sold. The variable selling and administrative expense is $8.20 per unit. The budgeted fixed selling and administrative expense is $132,800 per month, which includes depreciation of $14,400. The remainder of the fixed selling and administrative expense represents current cash flows. The sales budget shows 8,000 units are planned to be sold in July.Required:Prepare the selling and administrative expense budget for July.
What will be an ideal response?
| July | ||
| Budgeted unit sales | 8,000 | |
| Variable selling and administrative expense per unit | 8.20 | |
| Variable selling and administrative expense | $ | 65,600 |
| Fixed selling and administrative expense | 132,800 | |
| Total selling and administrative expense | 198,400 | |
| Less depreciation | 14,400 | |
| Cash disbursements for selling and administrative expenses | $ | 184,000 |
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