Waterway Company combines its operating expenses for budget purposes in a selling and administrative expenses budget. For the first six months of 2022, the following data are available: 1. 2. 3. Sales: 20,500 units in quarter 1; 22.700 units in quarter 2 Variable costs per dollar of sales: sales commissions 5%; delivery expense 2%, and advertising 4% Fixed costs per quarter: sales salaries $10,200; office salaries $8,800; depreciation $4,600, Insurance $1.700, utilities $700, and repairs expense $600 Unit selling price: $22 Prepare a selling and administrative expenses budget by quarters for the first six months of 2022. WATERWAY COMPANY Selling and Administrative Expenses Budget For the Six Months Ending June 30, 2022 1 $ Total
Waterway Company combines its operating expenses for budget purposes in a selling and administrative expenses budget. For the first six months of 2022, the following data are available: 1. 2. 3. Sales: 20,500 units in quarter 1; 22.700 units in quarter 2 Variable costs per dollar of sales: sales commissions 5%; delivery expense 2%, and advertising 4% Fixed costs per quarter: sales salaries $10,200; office salaries $8,800; depreciation $4,600, Insurance $1.700, utilities $700, and repairs expense $600 Unit selling price: $22 Prepare a selling and administrative expenses budget by quarters for the first six months of 2022. WATERWAY COMPANY Selling and Administrative Expenses Budget For the Six Months Ending June 30, 2022 1 $ Total
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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Transcribed Image Text:Waterway Company combines its operating expenses for budget purposes in a selling and administrative expenses budget. For the
first six months of 2022, the following data are available:
1.
2.
3.
Sales: 20,500 units in quarter 1; 22.700 units in quarter 2
Variable costs per dollar of sales: sales commissions 5%; delivery expense 2%; and advertising 4%
Fixed costs per quarter: sales salaries $10.200; office salaries $8,800; depreciation $4,600, Insurance $1.700, utilities $700,
and repairs expense $600
Unit selling price: $22
Prepare a selling and administrative expenses budget by quarters for the first six months of 2022.
WATERWAY COMPANY
Selling and Administrative Expenses Budget
For the Six Months Ending June 30, 2022
1
$
Total
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