The following information is available for Pioneer Company: Sales price per unit is $100. November and December sales were budgeted at 3,040 and 3,580 units, respectively. Variable costs are 10 percent of sales (5 percent commission, 1 percent advertising, 4 percent shipping). • Fixed costs per month are sales salaries, $4,600; office salaries, $2,800; depreciation, $2,600; building rent, $3,200; insurance, $1,400; and utilities, $800. Required: Determine Pioneer's budgeted selling and administrative expenses for November and December. Total Budgeted Selling and Administrative Expenses November December
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.
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