Vaughn Manufacturing makes and sells umbrellas. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available: Variable Cost Per Unit Sold $0.60 Sales commissions Shipping Advertising Executive salaries Depreciation on office equipment Other 1.20 $16908 $13650 $15925 $86425 0.30 0.35 Monthly Fixed Cost $ 6500 35000 7000 22000 Expenses are paid in the month incurred. If the company has budgeted to sell 6500 umbrellas in October, how much is the total budgeted variable selling and administrative expenses for October?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Vaughn Manufacturing makes and sells umbrellas. The company is in the process of preparing its Selling and
Administrative Expense Budget for the last half of the year. The following budget data are available:
Variable Cost Per Unit Sold
Monthly Fixed Cost
$0.60
$ 6500
Sales commissions
Shipping
Advertising
Executive salaries
Depreciation on office equipment
Other
1.20
0.30
0.35
35000
7000
22000
Expenses are paid in the month incurred. If the company has budgeted to sell 6500 umbrellas in October, how much is
the total budgeted variable selling and administrative expenses for October?
$16908
$13650
$15925
$86425
Transcribed Image Text:Vaughn Manufacturing makes and sells umbrellas. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available: Variable Cost Per Unit Sold Monthly Fixed Cost $0.60 $ 6500 Sales commissions Shipping Advertising Executive salaries Depreciation on office equipment Other 1.20 0.30 0.35 35000 7000 22000 Expenses are paid in the month incurred. If the company has budgeted to sell 6500 umbrellas in October, how much is the total budgeted variable selling and administrative expenses for October? $16908 $13650 $15925 $86425
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