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 10% of sales Advertising expense 21% of sales Miscellaneous administrative expense $1,600 per month plus 3% of sales Office salaries expense $15,000 per month Customer support expenses $2,250 plus 4% of sales Research and development expense 5,000 per month Prepare a flexible selling and administrative expenses budget for April for sales volumes of $100,000, $125,000, and $150,000. Enter all amounts as positive numbers. Morningside Technologies Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending April 30 Total sales $100,000 $125,000 $150,000 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 Total selling and administrative expenses

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 10% of sales Advertising expense 21% of sales Miscellaneous administrative expense $1,600 per month plus 3% of sales Office salaries expense $15,000 per month Customer support expenses $2,250 plus 4% of sales Research and development expense 5,000 per month Prepare a flexible selling and administrative expenses budget for April for sales volumes of $100,000, $125,000, and $150,000. Enter all amounts as positive numbers. Morningside Technologies Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending April 30 Total sales $100,000 $125,000 $150,000 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 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: 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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Echo Amplifiers prepared the following sales budget for the first quarter of 2018: Jan. Feb. Mar. Units 900 1,300 1,400 Sales price $100 $100 $100 Budgeted sales $90,000 $130,000 $140,000 It also has this additional information related to its expenses: Direct material per unit $1.50 Direct labor per unit 2 Variable manufacturing overhead per hour 0.40 Fixed manufacturing overhead per month 3,000 Sales commissions per unit 16 Sales salaries per month 5,100 Delivery expense per unit 0.50 Factory utilities per month 4,000 Administrative salaries per month 20,000 Marketing expenses per month 7,000 Insurance expense per month 12,000 Depreciation expense per month 10,000 Prepare a sales and administrative expense budget for each month in the quarter ending March 31, 2018. Enter all amounts as positive numbers.
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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.
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…
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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 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