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

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...

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Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead costs per month include supervision of 98,000, depreciation of 76,000, and other overhead of 245,000. Required: 1. Prepare a flexible budget for all costs of production for the following levels of production: 160,000 units, 170,000 units, and 175,000 units. 2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.) 3. What if Nashler Companys cost of maintenance rose to 0.22 per unit? How would that affect the unit product costs calculated in Requirement 2?
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