Flexible Budget for Selling and Administrative Expenses for a Service company Daybreak Technologies Inc. uses flexible budgets that are based on the following data: Sales commissions 16% of sales Advertising expense 12% of sales Miscellaneous administrative expense $5,000 per month plus 10% of sales Office salaries expense $19,000 per month Customer support expenses $8,000 per month plus 18% of sales Research and development expense $22,000 per month Prepare a flexible selling and administrative expenses budget for April for sales volumes of $200,000, $300,000, and $400,000. Daybreak Technologies Inc.Flexible Selling and Administrative Expenses BudgetFor the Month Ending April 30 Total sales $200,000 $300,000 $400,000 Variable cost: Sales commissions Advertising expense Miscellaneous administrative expense Customer support expenses 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
Flexible Budget for Selling and Administrative Expenses for a Service company Daybreak Technologies Inc. uses flexible budgets that are based on the following data: Sales commissions 16% of sales Advertising expense 12% of sales Miscellaneous administrative expense $5,000 per month plus 10% of sales Office salaries expense $19,000 per month Customer support expenses $8,000 per month plus 18% of sales Research and development expense $22,000 per month Prepare a flexible selling and administrative expenses budget for April for sales volumes of $200,000, $300,000, and $400,000. Daybreak Technologies Inc.Flexible Selling and Administrative Expenses BudgetFor the Month Ending April 30 Total sales $200,000 $300,000 $400,000 Variable cost: Sales commissions Advertising expense Miscellaneous administrative expense Customer support expenses 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
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
Daybreak Technologies Inc. uses flexible budgets that are based on the following data:
| Sales commissions | 16% of sales |
| Advertising expense | 12% of sales |
| Miscellaneous administrative expense | $5,000 per month plus 10% of sales |
| Office salaries expense | $19,000 per month |
| Customer support expenses | $8,000 per month plus 18% of sales |
| Research and development expense | $22,000 per month |
Prepare a flexible selling and administrative expenses budget for April for sales volumes of $200,000, $300,000, and $400,000.
Daybreak Technologies Inc.Flexible Selling and Administrative Expenses BudgetFor the Month Ending April 30
| Total sales | $200,000 | $300,000 | $400,000 |
| Variable cost: | |||
| Sales commissions | |||
| Advertising expense | |||
| Miscellaneous administrative expense | |||
| Customer support expenses | |||
| 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 |
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