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 6% of sales Advertising expense 20% of sales Miscellaneous administrative expense $1,700 per month plus 1% of sales Office salaries expense $16,000 per month Customer support expenses $2,350 plus 2% of sales Research and development expense 3,150 per month Prepare a flexible selling and administrative expenses budget for April for sales volumes of $105,000, $130,000, and $160,000. Enter all amounts as positive numbers. Morningside Technologies Inc.Flexible Selling and Administrative Expenses BudgetFor the Month Ending April 30 Total sales $105,000 $130,000 $160,000 Variable cost: Sales commissions $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Advertising expense fill in the blank 4 fill in the blank 5 fill in the blank 6 Miscellaneous administrative expense fill in the blank 7 fill in the blank 8 fill in the blank 9 Customer support expenses fill in the blank 10 fill in the blank 11 fill in the blank 12 Total variable cost $fill in the blank 13 $fill in the blank 14 $fill in the blank 15 Fixed cost: Miscellaneous administrative expense $fill in the blank 16 $fill in the blank 17 $fill in the blank 18 Office salaries expense fill in the blank 19 fill in the blank 20 fill in the blank 21 Customer support expenses fill in the blank 22 fill in the blank 23 fill in the blank 24 Research and development expense fill in the blank 25 fill in the blank 26 fill in the blank 27 Total fixed cost $fill in the blank 28 $fill in the blank 29 $fill in the blank 30 Total selling and administrative expenses $fill in the blank 31 $fill in the blank 32 $fill in the blank 33
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 6% of sales Advertising expense 20% of sales Miscellaneous administrative expense $1,700 per month plus 1% of sales Office salaries expense $16,000 per month Customer support expenses $2,350 plus 2% of sales Research and development expense 3,150 per month Prepare a flexible selling and administrative expenses budget for April for sales volumes of $105,000, $130,000, and $160,000. Enter all amounts as positive numbers. Morningside Technologies Inc.Flexible Selling and Administrative Expenses BudgetFor the Month Ending April 30 Total sales $105,000 $130,000 $160,000 Variable cost: Sales commissions $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Advertising expense fill in the blank 4 fill in the blank 5 fill in the blank 6 Miscellaneous administrative expense fill in the blank 7 fill in the blank 8 fill in the blank 9 Customer support expenses fill in the blank 10 fill in the blank 11 fill in the blank 12 Total variable cost $fill in the blank 13 $fill in the blank 14 $fill in the blank 15 Fixed cost: Miscellaneous administrative expense $fill in the blank 16 $fill in the blank 17 $fill in the blank 18 Office salaries expense fill in the blank 19 fill in the blank 20 fill in the blank 21 Customer support expenses fill in the blank 22 fill in the blank 23 fill in the blank 24 Research and development expense fill in the blank 25 fill in the blank 26 fill in the blank 27 Total fixed cost $fill in the blank 28 $fill in the blank 29 $fill in the blank 30 Total selling and administrative expenses $fill in the blank 31 $fill in the blank 32 $fill in the blank 33
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
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 | 6% of sales |
| Advertising expense | 20% of sales |
| Miscellaneous administrative expense | $1,700 per month plus 1% of sales |
| Office salaries expense | $16,000 per month |
| Customer support expenses | $2,350 plus 2% of sales |
| Research and development expense | 3,150 per month |
Prepare a flexible selling and administrative expenses budget for April for sales volumes of $105,000, $130,000, and $160,000. Enter all amounts as positive numbers.
Morningside Technologies Inc.Flexible Selling and Administrative Expenses BudgetFor the Month Ending April 30
| Total sales | $105,000 | $130,000 | $160,000 |
| Variable cost: | |||
| Sales commissions | $fill in the blank 1 | $fill in the blank 2 | $fill in the blank 3 |
| Advertising expense | fill in the blank 4 | fill in the blank 5 | fill in the blank 6 |
| Miscellaneous administrative expense | fill in the blank 7 | fill in the blank 8 | fill in the blank 9 |
| Customer support expenses | fill in the blank 10 | fill in the blank 11 | fill in the blank 12 |
| Total variable cost | $fill in the blank 13 | $fill in the blank 14 | $fill in the blank 15 |
| Fixed cost: | |||
| Miscellaneous administrative expense | $fill in the blank 16 | $fill in the blank 17 | $fill in the blank 18 |
| Office salaries expense | fill in the blank 19 | fill in the blank 20 | fill in the blank 21 |
| Customer support expenses | fill in the blank 22 | fill in the blank 23 | fill in the blank 24 |
| Research and development expense | fill in the blank 25 | fill in the blank 26 | fill in the blank 27 |
| Total fixed cost | $fill in the blank 28 | $fill in the blank 29 | $fill in the blank 30 |
| Total selling and administrative expenses | $fill in the blank 31 | $fill in the blank 32 | $fill in the blank 33 |
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