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.)
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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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 12 | |
fill in the blank 14 | fill in the blank 15 | fill in the blank 16 | |
Total variable cost | $fill in the blank 17 | $fill in the blank 18 | $fill in the blank 19 |
Fixed cost: | |||
$fill in the blank 21 | $fill in the blank 22 | $fill in the blank 23 | |
fill in the blank 25 | fill in the blank 26 | fill in the blank 27 | |
fill in the blank 29 | fill in the blank 30 | fill in the blank 31 | |
fill in the blank 33 | fill in the blank 34 | fill in the blank 35 | |
Total fixed cost | $fill in the blank 36 | $fill in the blank 37 | $fill in the blank 38 |
Total selling and administrative expenses | $fill in the blank 39 | $fill in the blank 40 | $fill in the blank 41 |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education