ABC Company's budgeted sales for June, July, and August are 13,200, 17,200, and 15,200 units respectively. The following cost behavior patterns are budgeted for ABC Company's operating expenses each month: Fixed costs: salaries, $2,600; rent, $5,600; depreciation, $3,000; advertising, $3,800 Mixed costs: utilities, $3,600+ $0.30 per unit Variable costs per unit sold: sales commissions, $2.60; marketing promotions, $1.60; supplies, $0.50; bad debt expense, $0.25 Required: Prepare ABC Company's operating expense budget for June, July, and August. Note: Enter all values as positive value. Variable operating expenses: Sales commissions Marketing promotions Supplies Bad debt expense Utilities Total variable expense Fixed operating expenses: Salaries Rent Depreciation Advertising Utilities Total fixed expense Budgeted operating expense June July August
ABC Company's budgeted sales for June, July, and August are 13,200, 17,200, and 15,200 units respectively. The following cost behavior patterns are budgeted for ABC Company's operating expenses each month: Fixed costs: salaries, $2,600; rent, $5,600; depreciation, $3,000; advertising, $3,800 Mixed costs: utilities, $3,600+ $0.30 per unit Variable costs per unit sold: sales commissions, $2.60; marketing promotions, $1.60; supplies, $0.50; bad debt expense, $0.25 Required: Prepare ABC Company's operating expense budget for June, July, and August. Note: Enter all values as positive value. Variable operating expenses: Sales commissions Marketing promotions Supplies Bad debt expense Utilities Total variable expense Fixed operating expenses: Salaries Rent Depreciation Advertising Utilities Total fixed expense Budgeted operating expense June July August
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:ABC Company's budgeted sales for June, July, and August are 13,200, 17,200, and 15,200 units respectively. The following cost
behavior patterns are budgeted for ABC Company's operating expenses each month:
Fixed costs: salaries, $2,600; rent, $5,600; depreciation, $3,000; advertising, $3,800
Mixed costs: utilities, $3,600+ $0.30 per unit
Variable costs per unit sold: sales commissions, $2.60; marketing promotions, $1.60; supplies, $0.50; bad debt expense, $0.25
Required:
Prepare ABC Company's operating expense budget for June, July, and August.
Note: Enter all values as positive value.
Variable operating expenses:
Sales commissions
Marketing promotions
Supplies
Bad debt expense
Utilities
Total variable expense
Fixed operating expenses:
Salaries
Rent
Depreciation
Advertising
Utilities
Total fixed expense
Budgeted operating expense
June
July
August
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