ABC Company's budgeted sales for June, July, and August are 15,400, 19,400, and 17,400 units respectively. The following cost behavior patterns are budgeted for ABC Company's operating expenses each month: Fixed costs: salaries, $3,700; rent, $6,700; depreciation, $4,100; advertising, $4,900 Mixed costs: utilities, $4,700 + $0.40 per unit Variable costs per unit sold: sales commissions, $3.70; marketing promotions, $2.70; supplies, $0.70; bad debt expense, $0.40 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 June July August $ 0 $ 0 69 $ 0 Advertising Utilities Total fixed expense $ 0 $ 0 $ 0 Budgeted operating expense $ 0 EA $ 0. $ 0
ABC Company's budgeted sales for June, July, and August are 15,400, 19,400, and 17,400 units respectively. The following cost behavior patterns are budgeted for ABC Company's operating expenses each month: Fixed costs: salaries, $3,700; rent, $6,700; depreciation, $4,100; advertising, $4,900 Mixed costs: utilities, $4,700 + $0.40 per unit Variable costs per unit sold: sales commissions, $3.70; marketing promotions, $2.70; supplies, $0.70; bad debt expense, $0.40 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 June July August $ 0 $ 0 69 $ 0 Advertising Utilities Total fixed expense $ 0 $ 0 $ 0 Budgeted operating expense $ 0 EA $ 0. $ 0
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 15,400, 19,400, and 17,400 units respectively. The following cost
behavior patterns are budgeted for ABC Company's operating expenses each month:
Fixed costs: salaries, $3,700; rent, $6,700; depreciation, $4,100; advertising, $4,900
Mixed costs: utilities, $4,700 + $0.40 per unit
Variable costs per unit sold: sales commissions, $3.70; marketing promotions, $2.70; supplies, $0.70; bad debt expense, $0.40
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
June
July
August
$
0 $
0
69
$
0
Advertising
Utilities
Total fixed expense
$
0 $
0 $
0
Budgeted operating expense
$
0
EA
$
0.
$
0
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