Flexible budget for selling and administrative expenses for a service company Digital Solutions Inc. uses flexible budgets that are based on the following data: Line Item Description Value Sales commissions 14% of sales Advertising expense 20% of sales Miscellaneous administrative expense $8,500 per month plus 12% of sales Office salaries expense $28,000 per month Customer support expenses $14,000 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 4 as a model.) Digital Solutions Inc.Flexible Selling and Administrative Expenses BudgetFor the Month Ending October 31 Line Item Description Amount Amount Amount Total sales $400,000 $500,000 $600,000 Variable cost:         $- Select - $- Select - $- Select -   - Select - - Select - - Select -   - Select - - Select - - Select -   - Select - - Select - - Select - Total variable cost $Total variable cost $Total variable cost $Total variable cost Fixed cost:         $- Select - $- Select - $- Select -   - Select - - Select - - Select -   - Select - - Select - - Select -   - Select - - Select - - Select - Total fixed cost $Total fixed cost $Total fixed cost $Total fixed cost Total selling and administrative expenses $Total selling and administrative expenses $Total selling and administrative expenses $Total selling and administrative expenses

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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:

Line Item Description Value
Sales commissions 14% of sales
Advertising expense 20% of sales
Miscellaneous administrative expense $8,500 per month plus 12% of sales
Office salaries expense $28,000 per month
Customer support expenses $14,000 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 4 as a model.)

Digital Solutions Inc.Flexible Selling and Administrative Expenses BudgetFor the Month Ending October 31

Line Item Description Amount Amount Amount
Total sales $400,000 $500,000 $600,000
Variable cost:      
 
$- Select - $- Select - $- Select -
 
- Select - - Select - - Select -
 
- Select - - Select - - Select -
 
- Select - - Select - - Select -
Total variable cost $Total variable cost $Total variable cost $Total variable cost
Fixed cost:      
 
$- Select - $- Select - $- Select -
 
- Select - - Select - - Select -
 
- Select - - Select - - Select -
 
- Select - - Select - - Select -
Total fixed cost $Total fixed cost $Total fixed cost $Total fixed cost
Total selling and administrative expenses $Total selling and administrative expenses $Total selling and administrative expenses $Total selling and administrative expenses
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