The following budget information is available for the HD Sales Company (HDC) for January: Sales $415,000 Freight out $0.20 per unit sold Depreciation on Administrative Equipment $19,500 Sales & Administrative Salaries $51,400 + 3% of sales Advertising $21,500 Depreciation on Manufacturing Equipment $24,500 Lease on Sales Building $48,800 Miscellaneous Selling Expenses $6,900 All operating expenses are paid in cash in the month incurred. If HDC expects to sell 29,500 units of inventory, the total budgeted selling and administrative expenses would be what amount on the January pro forma income statement? Multiple Choice $345,950 $146,950 $166,450 $190,950
The following budget information is available for the HD Sales Company (HDC) for January: Sales $415,000 Freight out $0.20 per unit sold Depreciation on Administrative Equipment $19,500 Sales & Administrative Salaries $51,400 + 3% of sales Advertising $21,500 Depreciation on Manufacturing Equipment $24,500 Lease on Sales Building $48,800 Miscellaneous Selling Expenses $6,900 All operating expenses are paid in cash in the month incurred. If HDC expects to sell 29,500 units of inventory, the total budgeted selling and administrative expenses would be what amount on the January pro forma income statement? Multiple Choice $345,950 $146,950 $166,450 $190,950
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following budget information is available for the HD Sales Company (HDC) for January:
Sales $415,000
Freight out $0.20 per unit sold
Depreciation on Administrative Equipment $19,500
Sales & Administrative Salaries $51,400 + 3% of sales
Advertising $21,500
Depreciation on Manufacturing Equipment $24,500
Lease on Sales Building $48,800
Miscellaneous Selling Expenses $6,900
All operating expenses are paid in cash in the month incurred. If HDC expects to sell 29,500 units of inventory, the total budgeted selling and administrative expenses would be what amount on the January pro forma income statement?
Multiple Choice
$345,950
$146,950
$166,450
$190,950
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