Flexible Budget for Selling and Administrative Expenses fora Service CompanyDigital Solutions Inc. uses flexible budgets that are basedon the following data:Sales commissions14% of salesAdvertising expense18% of salesMiscellaneous administrative expense$7,000 per month plus 12% of salesOffice salaries expense$30,000 per monthCustomer support expenses$12,000 per month plus 20% of salesResearch and development expense$31,000 per monthPrepare a flexible selling and administrative expensesbudget 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 BudgetFor the Month Ending October 31Total sales$400,000 $500,000 $600,000Variable cost:Total variable costFixed cost:Total fixed costTotal selling and administrative expenses

A flexible budget is one in which varying level of expenses are shown when volume of sales changes.…

Answered: Flexible Budget for Selling and…

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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Preparing a Selling and Administrative Expenses Budget Fazel Company makes and sells paper products. In the coming year, Fazel expects total sales of $19,800,000. There is a 4% 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 spacе Advertising Total fixed expenses Total selling and administrative expenses
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Flexible Budget for Selling and Administrative Expenses for a Service Company
Preparing a Selling and Administrative Expenses Budget Fazel Company makes and sells paper products. In the coming year, Fazel expects total sales of $20,000,000. There is a 3% 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 $fill in the blank 1 Fixed expenses: Salaries $fill in the blank 2 Utilities fill in the blank 3 Office space fill in the blank 4 Advertising fill in the blank 5 Total fixed expenses fill in the blank 6 Total selling and administrative expenses $fill in the blank 7
How do I prepare the selling and administrative expense budget for the quarter ended March 31, 20X1?
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
Please help me with show all calculation thanku
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 Advertising expense 18% of sales Miscellaneous administrative expense $9,000 per month plus 12% of sales Office salaries expense $29,000 per month Customer support expenses $12,000 per month plus 20% of sales Research and development expense $32,000 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: $ $ $ Total variable cost $ $ $ Fixed cost: $ $ $ Total fixed cost $ $ $ Total selling and administrative…
Flexible Budget for Selling and Administrative Expenses for a Service Company Morningside Technologies Inc. uses flexible budgets that are based on the following data: Sales commissions 6% of sales Advertising expense 20% of sales Miscellaneous administrative expense $1,700 per month plus 1% of sales Office salaries expense $16,000 per month Customer support expenses $2,350 plus 2% of sales Research and development expense 3,150 per month Prepare a flexible selling and administrative expenses budget for April for sales volumes of $105,000, $130,000, and $160,000. Enter all amounts as positive numbers. Morningside Technologies Inc.Flexible Selling and Administrative Expenses BudgetFor the Month Ending April 30 Total sales $105,000 $130,000 $160,000 Variable cost: Sales commissions $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Advertising expense fill in the blank 4 fill in the blank 5 fill in the blank 6 Miscellaneous administrative…
Zilly Company budgets sales of $156,000 for June. Zilly pays a sales manager a monthly salary of $5,300 and a commission of 8% of that month's sales dollars. Prepare a selling expense budget for June. Budgeted sales ZILLY COMPANY Selling Expense Budget June
Print Item The Operating Budgets: Marketing and Administrative Expense Budgets The marketing expense budget can be prepared in much the same way as the overhead budget. That is, variable expenses and fixed expenses are budgeted and then totaled. Suppose that a company has variable marketing expense consisting of a sales commission equal to 5% of sales revenue. Sales revenue for the first three months of the quarter equals $560,000, $580,000, and $600,000. Fixed marketing expense consists of the following monthly costs: depreciation $3,500, salaries $12,000, and advertising $5,000. Prepare a marketing expense budget for the first quarter, by month and in total. Budgeted sales revenue x Sales commission rate Budgeted variable marketing expense $ Fixed marketing expense: Depreciation Salaries January 560,000 5 X 28,000 3,500 12,000 5,000 February 580,000 20,500 48,500 ✔ 5.2 X 29,000 3,500 12,000 5,000 20,500 49,500 $ $ March 600,000 5.3 X 30,000 3,500 12,000 5,000 20,500 50,500 Total…
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