Danzi, Incorporated, has budgeted sales for the month of July and estimated cost behavior patterns for a number of its expenses listed below. Budgeted sales revenue Budgeted sales Budgeted production (Partial listing of expense items): Sales commission Sales salaries Production supervisor salaries Administrative salaries Facility expense Marketing promotions Depreciation on plant equipment Depreciation on office equipment Raw materials used Advertising Delivery expense Bad debt expense Property taxes on plant Property taxes on office Danzi, Incorporated Operating Expense Budget for the month of July Selling expenses: Variable selling expenses: Sales commission Marketing promotions Delivery expense Bad debt expense Total variable selling expenses Fixed selling expenses: Sales salaries Advertising Total fixed selling expenses Total selling expenses Administrative expenses: Required: From this information prepare an operating expense budget for the month of July. Administrative salaries Facility expense Depreciation on office equipment $ 230,000 Property taxes on office Total administrative expenses Budgeted operating expenses 4,600 units 4,900 units 5% of sales $ 6,800 7,600 9,400 8,000 $ 0.75 per unit $ 5,000 2,500 $ 7.50 per unit $ 4,200 $ 0.50 per unit 1%of sales $ 5,000 $ 3,000
Danzi, Incorporated, has budgeted sales for the month of July and estimated cost behavior patterns for a number of its expenses listed below. Budgeted sales revenue Budgeted sales Budgeted production (Partial listing of expense items): Sales commission Sales salaries Production supervisor salaries Administrative salaries Facility expense Marketing promotions Depreciation on plant equipment Depreciation on office equipment Raw materials used Advertising Delivery expense Bad debt expense Property taxes on plant Property taxes on office Danzi, Incorporated Operating Expense Budget for the month of July Selling expenses: Variable selling expenses: Sales commission Marketing promotions Delivery expense Bad debt expense Total variable selling expenses Fixed selling expenses: Sales salaries Advertising Total fixed selling expenses Total selling expenses Administrative expenses: Required: From this information prepare an operating expense budget for the month of July. Administrative salaries Facility expense Depreciation on office equipment $ 230,000 Property taxes on office Total administrative expenses Budgeted operating expenses 4,600 units 4,900 units 5% of sales $ 6,800 7,600 9,400 8,000 $ 0.75 per unit $ 5,000 2,500 $ 7.50 per unit $ 4,200 $ 0.50 per unit 1%of sales $ 5,000 $ 3,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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.
Question
Transcribed Image Text:Danzi, Incorporated, has budgeted sales for the month of July and estimated cost behavior patterns for a number of its expenses listed
below.
Budgeted sales revenue
Budgeted sales
Budgeted production
(Partial listing of expense items):
Sales commission
Sales salaries
Production supervisor salaries
Administrative salaries
Facility expense
Marketing promotions
Depreciation on plant equipment
Depreciation on office equipment
Raw materials used
Advertising
Delivery expense
Bad debt expense
Property taxes on plant
Property taxes on office
Danzi, Incorporated
Operating Expense Budget for the month of July
Selling expenses:
Variable selling expenses:
Sales commission
Marketing promotions
Delivery expense
Bad debt expense
Total variable selling expenses
Fixed selling expenses:
Sales salaries
Advertising
Total fixed selling expenses
Total selling expenses
Administrative expenses:
Administrative salaries
Facility expense
Depreciation on office equipment
Property taxes on office
$ 230,000
Total administrative expenses
Budgeted operating expenses
4,600 units
4,900 units
5% of sales
$ 6,800
7,600
Required:
From this information prepare an operating expense budget for the month of July.
9,400
8,000
$ 0.75 per unit
$ 5,000
2,500
$ 7.50
per unit
$ 4,200
$0.50 per unit
1% of sales
$ 5,000
$ 3,000
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