Daybreak Technologies Inc. uses flexible budgets that are based on the following data: Sales commissions 9% of sales Advertising expense 15% of sales Miscellaneous administrative expense $1,450 per month plus 3% of sales Office salaries expense $14,000 per month Customer support expenses $2,050 plus 4% of sales Research and development expense $4,500 per month Prepare a flexible selling and administrative expenses budget for April for sales volumes of $90,000, $115,000, and $135,000. Daybreak Technologies Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending April 30 Total sales $90,000 $115,000 $135,000 Variable cost: Sales commissions 8,100 10,350 12,150 Advertising expense 13,500 17,250 20,250 Miscellaneous administrative expense 2,700 3,450 4,050 Customer support expenses 3,600 4,600 5,400 Total variable cost Fixed cost: Miscellaneous administrative expense Office salaries expense Customer support expenses Research and development expense Total fixed cost Total selling and administrative expenses

Daybreak Technologies Inc. uses flexible budgets that are based on the following data: Sales commissions 9% of sales Advertising expense 15% of sales Miscellaneous administrative expense $1,450 per month plus 3% of sales Office salaries expense $14,000 per month Customer support expenses $2,050 plus 4% of sales Research and development expense $4,500 per month Prepare a flexible selling and administrative expenses budget for April for sales volumes of $90,000, $115,000, and $135,000. Daybreak Technologies Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending April 30 Total sales $90,000 $115,000 $135,000 Variable cost: Sales commissions 8,100 10,350 12,150 Advertising expense 13,500 17,250 20,250 Miscellaneous administrative expense 2,700 3,450 4,050 Customer support expenses 3,600 4,600 5,400 Total variable cost Fixed cost: Miscellaneous administrative expense Office salaries expense Customer support expenses Research and development expense Total fixed cost Total selling and administrative expenses

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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. Flexible budget for selling and administrative expenses for a service company Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales commissions 15% of sales 18% of sales $5,000 per month plus 12% of sales $28,000 per month $12,000 per month plus 20% of sales $30,000 per month Advertising expense Miscellaneous administrative expense Office salaries expense Customer support expenses Research and development expense Prepare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, $500,000, and $600,000. (Use Exhibit 4 as a model.) Digital Solutions Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending October 31 Line Item Description Total sales Variable cost: Total variable cost Fixed cost: Total fixed cost Total selling and administrative expenses Amount Amount Amount $400,000 $500,000 $600,000 $ $ $ $ $
Flexible budget for selling and administrative expenses for a service company Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales commissions 6% of sales Advertising expense 14% of sales Miscellaneous administrative expense $11,000 per month plus 4% of sales Office salaries expense $52,000 per month Customer support expenses $18,000 per month plus 31% of sales Research and development expense $78,000 per month This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet Prepare a flexible selling and administrative expenses budget for October for sales volumes of $600,000, $900,000, and $1,000,00o. (Use Exhibit 5 as a model.) Enter all amounts as positive numbers. Digital Solutions Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending October 31 Total sales $600,000 $900,000 $1,000,000 Variable cost:…
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Flexible Budget for Selling and Administrative Expenses for a Service Company
Fazel Company makes and sells paper products. In the coming year, Fazel expects total sales of $18,000,000. There is a 6% commission on sales. In addition, fixed expenses of the sales and administrative offices include the following: Salaries $ 960,000 Utilities 365,000 Office space 230,000 Advertising 1,200,000 Required: Prepare a selling and administrative expenses budget for Fazel Company for the coming year. Fazel Company Selling and Administrative Expenses Budget For the Coming Year Variable selling expenses Fixed expenses: Salaries Utilities Office space Advertising Total fixed expenses Total selling and administrative expenses
Rodger's Cabinet Manufacturers uses flexible budgets that are based on the following manufacturing data for the month of July: Direct materials $8 per unit Direct labor $5 per unit Electric power (variable) $0.30 per unit Electric power (fixed) $4,000 per month Supervisor salaries $25,000 per month Property taxes on factory $4,000 per month Straight-line depreciation $2,900 per month Prepare a flexible budget for Rodger's based on production of 10,000, 15,000, and 20,000 units. Rodger's Cabinet Manufacturers Flexible Manufacturing Budget For the Month Ended July 31 Units of production fill in the blank 1 fill in the blank 2 fill in the blank 3 Variable cost: Direct materials ($8 per unit) $fill in the blank 4 $fill in the blank 5 $fill in the blank 6 Direct labor ($5 per unit) fill in the blank 7 fill in the blank 8 fill in the blank 9 Electric power ($0.30 per unit) fill in the blank 10 fill in the blank 11 fill in the blank…
(2) Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales commissions 8% of sales Advertising expense 16% of sales Miscellaneous administrative expense $8,000 per month plus 5% of sales Office salaries expense $50,000 per month Customer support expenses $18,000 per month plus 32% of sales Research and development expense $73,000 per month Prepare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, $900,000, and $1,100,000. (Use Exhibit 5 as a model.) Enter all amounts as positive numbers.
Prepare a monthly flexible selling expense budget for Podism Company for sales volumes of $270,000, $350,000, and $480,000, based on the following data: Sales commissions 7% of sales Sales manager's salary $62,000 per month Advertising expense $70,000 per month Shipping expense 2% of sales Miscellaneous selling expense $2,500 per month plus 1/2% of sales Podism Company Monthly Selling Expense Budget Sales volume $270,000 $350,000 $480,000 Variable expense: Sales commissions х X Shipping expense X Miscellaneous selling expense Total variable expense Fixed expense: Sales manager's salary x $ Advertising expense X Miscellaneous selling expense Total fixed expense %$4 Total selling expense $ X
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Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,400 units. Sales Costa PHOENIX COMPANY Fixed Budget For Year Ended December 31 Direct materials Direct labor Sales staff commissions Depreciation-Machinery Supervisory salaries Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation-office equipment Income $ 3,234,000 1,001,000 246,400 46,200 295,000 198,000 231,000 251,000 610,700 193,000 $ 161,700