A manufacturing company's budgeted income statement includes the following data: Data extracted from budgeted income statement Mar Apr May Jun Sales revenue $120,000 $90,000 $130,000 $110,000 Commission expense (10% of sale) 12,000 9000 13,000 11,000 Salaries expense 33,000 33,000 33,000 33,000 Miscellaneous expense—5% of sales 6000 4500 6500 5500 Rent expense 3700 3700 3700 3700 Utilities expense 2000 2000 2000 2000 Insurance expense 2900 2900 2900 2900 Depreciation expense 4500 4500 4500 4500The budget assumes that 60% of commission expenses are paid in the month they were incurred, and the remaining 40% are paid one month later. In addition, 50% of salaries expenses are paid in the month incurred 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 was prepaid for the year on January 1. How much is the total of the budgeted cash payments for selling and administrative expenses for the month of May? Group of answer choices $50,900 $45,200 $56,600 $54,600
A manufacturing company's budgeted income statement includes the following data: Data extracted from budgeted income statement Mar Apr May Jun Sales revenue $120,000 $90,000 $130,000 $110,000 Commission expense (10% of sale) 12,000 9000 13,000 11,000 Salaries expense 33,000 33,000 33,000 33,000 Miscellaneous expense—5% of sales 6000 4500 6500 5500 Rent expense 3700 3700 3700 3700 Utilities expense 2000 2000 2000 2000 Insurance expense 2900 2900 2900 2900 Depreciation expense 4500 4500 4500 4500The budget assumes that 60% of commission expenses are paid in the month they were incurred, and the remaining 40% are paid one month later. In addition, 50% of salaries expenses are paid in the month incurred 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 was prepaid for the year on January 1. How much is the total of the budgeted cash payments for selling and administrative expenses for the month of May? Group of answer choices $50,900 $45,200 $56,600 $54,600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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100%
A manufacturing company's
| Data extracted from budgeted income statement | Mar | Apr | May | Jun |
| Sales revenue | $120,000 | $90,000 | $130,000 | $110,000 |
| Commission expense (10% of sale) | 12,000 | 9000 | 13,000 | 11,000 |
| Salaries expense | 33,000 | 33,000 | 33,000 | 33,000 |
| Miscellaneous expense—5% of sales | 6000 | 4500 | 6500 | 5500 |
| Rent expense | 3700 | 3700 | 3700 | 3700 |
| Utilities expense | 2000 | 2000 | 2000 | 2000 |
| Insurance expense | 2900 | 2900 | 2900 | 2900 |
| 4500 | 4500 | 4500 | 4500 |
Group of answer choices
$50,900
$45,200
$56,600
$54,600
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