Bailee Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2017, the following data are available. 1. Sales: 33,000 units quarter 1; 35,000 units quarter 2. 2. Variable costs per dollar of sales: Sales commissions $33,000 quarter 1; $35,000 quarter 2, delivery expense $13,200 quarter 1 and $14,000 quarter 2, and advertising $19,800 quarter 1 and $21,000. 3. Fixed costs per quarter: Sales salaries $15,000, office salaries $6,000, depreciation $4,200, insurance $1,500, utilities $800, and repairs expense $600. 4. Unit selling price: $20. Instructions: Prepare a selling and administrative expense budget by quarters for the first 6 months of 201
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Bailee Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2017, the following data are available.
1. Sales: 33,000 units quarter 1; 35,000 units quarter 2.
2. Variable costs per dollar of sales: Sales commissions $33,000 quarter 1; $35,000 quarter 2, delivery expense $13,200 quarter 1 and $14,000 quarter 2, and advertising $19,800 quarter 1 and $21,000.
3. Fixed costs per quarter: Sales salaries $15,000, office salaries $6,000,
4. Unit selling price: $20.
Instructions: Prepare a selling and administrative expense budget by quarters for the first 6 months of 201
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