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 20% of sales Miscellaneous administrative expense $5,500 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 $31,000 per month

FINANCIAL ACCOUNTING
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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:

Sales commissions 15% of sales
Advertising expense 20% of sales
Miscellaneous administrative expense $5,500 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 $31,000 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:
$4
$
$
Total variable cost
$
Fixed cost:
$
$
Total fixed cost
$
$
Total selling and administrative expenses
$
$
Transcribed Image Text: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: $4 $ $ Total variable cost $ Fixed cost: $ $ Total fixed cost $ $ Total selling and administrative expenses $ $
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