Pearl, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $40,000.00 in January, 50,000.00 in February, and $60,000.00 in March. Variable and fixed selling and administrative expenses are as follows: Variable Expenses: Power cost (30% of sales) Miscellaneous expenses: (10% of sales) Fixed Expenses: Salaries expense: $8,000.00 per month Rent expense: $5,000.00 per month Depreciation expense: $1,000.00 per month Power cost/fixed portion: $600.00 per month Miscellaneous expenses/fixed portion: $1,200.00 per month Calculate total budgeted selling and administrative expenses for the month of January. O A. $39,800.00 O B. $35,800.00 OC. $16,000.00 O D. $31,800.00

Pearl, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $40,000.00 in January, 50,000.00 in February, and $60,000.00 in March. Variable and fixed selling and administrative expenses are as follows: Variable Expenses: Power cost (30% of sales) Miscellaneous expenses: (10% of sales) Fixed Expenses: Salaries expense: $8,000.00 per month Rent expense: $5,000.00 per month Depreciation expense: $1,000.00 per month Power cost/fixed portion: $600.00 per month Miscellaneous expenses/fixed portion: $1,200.00 per month Calculate total budgeted selling and administrative expenses for the month of January. O A. $39,800.00 O B. $35,800.00 OC. $16,000.00 O D. $31,800.00

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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