Mutiple Choice O $14.000 O$32.000 O O $47.000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:Assume a company's sales budget for July estimates 17,000 units sold. The variable selling and administrative expense used for budgeting purposes is $4.00 per unit sold. The total budgeted cash disbursements for selling and administrative expenses in July is $139,000. The total fixed selling and administrative expenses included in the selling and administrative expense
budget for July is $100,000. What is the amount of depreciation included in the selling and administrative expense budget for July?
Multiple Choice
O
OOO
$14,000
$32,000
$29,000
$47,000
Expert Solution

Explanation -
Variable and Fixed Expenses -
Variable Expenses are those expenses which varies according to the change in output. Their cost per unit is constant. On the other hand Fixed Expenses are those that does not change according to the change in output.
Depreciation Expense is non cash expenses.
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