Daybreak Technologies Inc. uses flexible budgets that are based on the following data:Sales commissions7% of salesAdvertising expense21% of salesMiscellaneous administrative expense$1,850 per month plus 1% of salesOffice salaries expense$17,000 per monthCustomer support expenses$2,600 plus 2% of salesResearch and development expense$3,450 per monthPrepare a flexible selling and administrative expenses budget for April for sales volumes of $115,000, $145,000, and $175,000.Daybreak Technologies Inc.Flexible Selling and Administrative Expenses BudgetFor the Month Ending April 30Total sales$115,000 $145,000 $175,000Variable cost:Sales commissionsAdvertising expenseMiscellaneous administrative expenseCustomer support expensesTotal variable costFixed cost:Miscellaneous administrative expenseOffice salaries expenseCustomer support expensesResearch and development expenseTotal fixed costTotal selling and administrative expenses

Solution: Flexible selling and administrative expense budget is as under:

Daybreak Technologies Inc. uses flexible budgets that are based on the following data: Sales commissions 7% of sales Advertising expense 21% of sales Miscellaneous administrative expense $1,850 per month plus 1% of sales Office salaries expense $17,000 per month Customer support expenses $2,600 plus 2% of sales Research and development expense $3,450 per month Prepare a flexible selling and administrative expenses budget for April for sales volumes of $115,000, $145,000, and $175,000. Daybreak Technelegies Inc

Daybreak Technologies Inc. uses flexible budgets that are based on the following data: Sales commissions 7% of sales Advertising expense 21% of sales Miscellaneous administrative expense $1,850 per month plus 1% of sales Office salaries expense $17,000 per month Customer support expenses $2,600 plus 2% of sales Research and development expense $3,450 per month Prepare a flexible selling and administrative expenses budget for April for sales volumes of $115,000, $145,000, and $175,000. Daybreak Technelegies Inc

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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