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 Advertising expense Miscellaneous administrative expense Office salaries expense Customer support expenses 14% of sales 18% of sales $5,500 per month plus 12% of sales $30,000 per month $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 4 as a model.) Digital Solutions Inc. Flexible Selling and Administrative Expenses Budget Line Item Description Total sales For the Month Ending October 31 Amount $400,000 Amount Amount $500,000 $600,000 Variable cost: Sales commissions 56,000 70,000 ✓ Advertising expense 72,000 90,000 Miscellaneous administrative expense 48,000 60,000 Customer support expenses 80,000 100,000 ✓ Total variable cost 256,000 320,000 ✓ 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 Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales commissions Advertising expense Miscellaneous administrative expense Office salaries expense Customer support expenses 14% of sales 18% of sales $5,500 per month plus 12% of sales $30,000 per month $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 4 as a model.) Digital Solutions Inc. Flexible Selling and Administrative Expenses Budget Line Item Description Total sales For the Month Ending October 31 Amount $400,000 Amount Amount $500,000 $600,000 Variable cost: Sales commissions 56,000 70,000 ✓ Advertising expense 72,000 90,000 Miscellaneous administrative expense 48,000 60,000 Customer support expenses 80,000 100,000 ✓ Total variable cost 256,000 320,000 ✓ 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: 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: $Sales commissions $Sales commissions $Sales commissions Advertising expense Advertising expense Advertising…
Budget performance report for a cost center GHT Tech Inc. sells electronics over the Internet. The Consumer Products Division is organized as a cost center. The budget for the Consumer Products Division for the month ended July 31 is as follows: Line Item Description Customer service salaries Insurance and property taxes Distribution salaries Marketing salaries Engineer salaries 836,850 586,110 185,120 Total $4,167,050 During July, the costs incurred in the Consumer Products Division were as follows: Warehouse wages Equipment depreciation Line Item Description Customer service salaries Insurance and property taxes Distribution salaries Marketing salaries Engineer salaries Warehouse wages Equipment depreciation Total Required: Question Content Area Line Item Description Customer service salaries Insurance and property taxes Distribution salaries Amount $546,840 114,660 872,340 1,025,130 1. Prepare a budget performance report for the director of the Consumer Products Division for the…
. 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:…
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
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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 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…