2. Flexible Budget for Selling and Administrative Expenses for a Service CompanyMorningside Technologies Inc. uses flexible budgets that are based on the following data: Flexible Budget for Selling and Administrative Expenses for a Service CompanyMorningside Technologies Inc. uses flexible budgets that are based on the following data:9% of salesSales commissionsAdvertising expenseMiscellaneous administrative expenseOffice salaries expenseCustomer support expensesResearch and development expenseTotal salesVariable cost:Prepare a flexible selling and administrative expenses budget for April for sales volumes of $120,000, $150,000, and $180,000. Enter all amounts as positive numbers.Morningside Technologies Inc.Flexible Selling and Administrative Expenses BudgetFor the Month Ending April 30Sales commissionsAdvertising expenseMiscellaneous administrative expenseCustomer support expensesTotal variable costFixed cost:Miscellaneous administrative expense15% of salesOffice salaries expenseCustomer support expenses$1,900 per month plus 2% of sales$18,000 per month$2,700 plus 3% of sales.4,800 per month$120,000 $150,000 $180,000 Morningside Technologies Inc.Flexible Selling and Administrative Expenses BudgetFor the Month Ending April 30Total salesVariable cost:Sales commissionsAdvertising expenseMiscellaneous administrative expenseCustomer support expensesTotal variable costFixed cost:Miscellaneous administrative expenseOffice salaries expenseCustomer support expensesResearch and development expenseTotal fixed cost$120,000 $150,000 $180,000$Total selling and administrative expenses $$$00⁰⁰⁰00000

A flexible budget is prepared on the basis of the budgeted rate and on the basis of different budget…

Flexible Budget for Selling and Administrative Expenses for a Service Company Morningside Technologies Inc. uses flexible budgets that are based on the following data: 9% of sales Sales commissions Advertising expense Miscellaneous administrative expense Office salaries expense Customer support expenses Research and development expense Total sales Variable cost: Sales commissions Advertising expense Miscellaneous administrative expense Customer support expenses Total variable cost Prepare a flexible selling and administrative expenses budget for April for sales volumes of $120,000, $150,000, and $180,000. Enter all amounts as positive numbers. Morningside Technologies Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending April 30 Fixed cost: Miscellaneous administrative expense Office salaries expense 15% of sales Customer support oxDODGO $1,900 per month plus 2% of sales $18,000 per month $2,700 plus 3% of sales 4,800 per month $120,000 $150,000 $180,000 18

Flexible Budget for Selling and Administrative Expenses for a Service Company Morningside Technologies Inc. uses flexible budgets that are based on the following data: 9% of sales Sales commissions Advertising expense Miscellaneous administrative expense Office salaries expense Customer support expenses Research and development expense Total sales Variable cost: Sales commissions Advertising expense Miscellaneous administrative expense Customer support expenses Total variable cost Prepare a flexible selling and administrative expenses budget for April for sales volumes of $120,000, $150,000, and $180,000. Enter all amounts as positive numbers. Morningside Technologies Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending April 30 Fixed cost: Miscellaneous administrative expense Office salaries expense 15% of sales Customer support oxDODGO $1,900 per month plus 2% of sales $18,000 per month $2,700 plus 3% of sales 4,800 per month $120,000 $150,000 $180,000 18

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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Concept explainers

Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.

Question

2. Flexible Budget for Selling and Administrative Expenses for a Service Company Morningside Technologies Inc. uses flexible budgets that are based on the following data:

Flexible Budget for Selling and Administrative Expenses for a Service Company
Morningside Technologies Inc. uses flexible budgets that are based on the following data:
9% of sales
Sales commissions
Advertising expense
Miscellaneous administrative expense
Office salaries expense
Customer support expenses
Research and development expense
Total sales
Variable cost:
Prepare a flexible selling and administrative expenses budget for April for sales volumes of $120,000, $150,000, and $180,000. Enter all amounts as positive numbers.
Morningside Technologies Inc.
Flexible Selling and Administrative Expenses Budget
For the Month Ending April 30
Sales commissions
Advertising expense
Miscellaneous administrative expense
Customer support expenses
Total variable cost
Fixed cost:
Miscellaneous administrative expense
15% of sales
Office salaries expense
Customer support expenses
$1,900 per month plus 2% of sales
$18,000 per month
$2,700 plus 3% of sales.
4,800 per month
$120,000 $150,000 $180,000

Morningside Technologies Inc.
Flexible Selling and Administrative Expenses Budget
For the Month Ending April 30
Total sales
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
$120,000 $150,000 $180,000
$
Total selling and administrative expenses $
$
$
00⁰⁰⁰00000

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Which of the following statements is true? I. The direct labor budget begins with the required production in units from the production budget. II. The direct labor budget shows the direct labor-hours required to satisfy the production budget. Multiple Choice О Neither statement is true. О Only statement II is true. О Only statement I is true. О Both statements are true.