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 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 $90,000 Total sales $115,000 $135,000 Variable cost: Sales commissions 1,000 X 103,500 X 121,500 X Advertising expense 13,500V 17,250V 20,250 Miscellaneous administrative expense Customer support expenses Total variable cost Fixed cost: Miscellaneous administrative expense orfice 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 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 $90,000 Total sales $115,000 $135,000 Variable cost: Sales commissions 1,000 X 103,500 X 121,500 X Advertising expense 13,500V 17,250V 20,250 Miscellaneous administrative expense Customer support expenses Total variable cost Fixed cost: Miscellaneous administrative expense orfice 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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Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month: Cost Formulas Direct labor $16.40q Indirect labor $4,000 + $1.40q Utilities $5,300 + $0.30q Supplies $1,600 + $0.10q Equipment depreciation $18,500 + $3.00q Factory rent $8,200 Property taxes $2,500 Factory administration $13,600 + $0.60q The Production Department planned to work 4,400 labor-hours in March; however, it actually worked 4,200 labor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March Direct labor $ 70,480 Indirect labor $ 9,340 Utilities $ 7,010 Supplies $ 2,250 Equipment depreciation $ 31,100 Factory rent $ 8,600 Property taxes $ 2,500 Factory…
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 14% of sales Advertising expense 20% of sales Miscellaneous administrative expense $6,000 per month plus 12% of sales Office salaries expense $30,000 per month Customer support expenses $12,000 per month plus 20% of sales Research and development expense $30,000 per month Prepare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, $500,000, and $600,000. (Use Exhibit 5 as a model.) Digital Solutions Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending October 31 Total sales $400,000 $500,000 $600,000 Variable cost: $fill in the blank 2 $fill in the blank 3 $fill in the blank 4 fill in the blank 6 fill in the blank 7 fill in the blank 8 fill in the blank 10 fill in the blank 11 fill in the blank…
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Preparing a Selling and Administrative Expenses Budget Fazel Company makes and sells paper products. In the coming year, Fazel expects total sales of $19,200,000. There is a 5% commission on sales. In addition, fixed expenses of the sales and administrative offices include the following: Salaries Utilities Office space $960,000 365,000 230,000 Advertising 1,200,000 Required: Prepare a selling and administrative expenses budget for Fazel Company for the coming year.
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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 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