The budgeted unit sales of Weller Company for the upcoming fiscal year are provided below: 3rd Quarter 14,000 4th Quarter 1st Quarter 15,000 2nd Quarter 16,000 Budgeted unit sales 13,000 The company's variable selling and administrative expense per unit is $2.50. Fixed selling and administrative expenses include dvertising expenses of $8,000 per quarter, executive salaries of $35,000 per quarter, and depreciation of $20,000 per quarter. In ddition, the company will make insurance payments of $5,000 in the first quarter and $5,000 in the third quarter. Finally, property axes of $8,000 will be paid in the second quarter.
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.
![Weller Company
Selling and Administrative Expense Budget
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Year
Fixed selling and administrative expenses:
Total fixed selling and administrative expenses
Total selling and administrative expenses
Cash disbursements for selling and administrative expenses](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F04655fa1-8a14-4287-9748-c095e4183a84%2Fc891afa0-2e7e-4c5d-9aba-43a26fdee0bf%2Fngcgsjr_processed.png&w=3840&q=75)
![The budgeted unit sales of Weller Company for the upcoming fiscal year are provided below:
1st Quarter
15,000
2nd Quarter
16,000
3rd Quarter
4th Quarter
Budgeted unit sales
14,000
13,000
The company's variable selling and administrative expense per unit is $2.50. Fixed selling and administrative expenses include
advertising expenses of $8,000 per quarter, executive salaries of $35,000 per quarter, and depreciation of $20,000 per quarter. In
addition, the company will make insurance payments of $5000 in the first quarter and $5,000 in the third quarter. Finally, property
taxes of $8,000 will be paid in the second quarter.
Required:
Prepare the company's selling and administrative expense budget for the upcoming fiscal year. (Round "Variable cost" answers to 2
decimal places.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F04655fa1-8a14-4287-9748-c095e4183a84%2Fc891afa0-2e7e-4c5d-9aba-43a26fdee0bf%2F2rivq4_processed.png&w=3840&q=75)
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