Weller Company's budgeted unit sales for next year are provided below: Budgeted unit sales 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 15,000 14,000. *16,000 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 $5,000 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 next year. Notes

Weller Company's budgeted unit sales for next year are provided below: Budgeted unit sales 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 15,000 14,000. *16,000 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 $5,000 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 next year. Notes

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The following data relate to a year's budgeted activity for Blossom Limited, a company that manufactures one product: Beginning inventory Production Available for sale Sales Ending inventory Units (a) 41,360 144,760 186,120 134,420 Selling price Variable manufacturing costs Variable selling, general, and administrative expenses Fixed manufacturing costs (based on 100,000 units) Fixed selling, general, and administrative expenses (based on 100,000 units) Break-even sales 51,700 Per unit $8.00 3.00 3.00 Total fixed costs and expenses remain unchanged within the relevant range of 25,000 units to a total capacity of 160,000 units. units 0.55 0.85 Calculate the projected annual break-even sales in units. (Round answer to O decimal places, e.g. 5,275.)
Sheridan Company has invested 3,420,000 in assets to produce 11,400 units of its finished product. Sheridan's budget for the year is as follows: net income 478,000; variable costs, 2,736,000; fixed costs, 456,000 Compute each of the following: (Round answers to 1 decimal place, e.g. 15.2%.) 1. Budgeted ROI ____% 2. Markup percentage using the total cost approach %
The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. Compute the number of units that must be sold in order to achieve a target income of $130,000. Sales (50,000 units) $1,000,000 Costs: Direct materials $ 270,000 Direct labor 240,000 Fixed factory overhead 100,000 Variable factory overhead 150,000 Fixed marketing costs 110,000 Variable marketing costs 50,000 Income 920,000 $ 80,000 O a. 53,165. O b. 81,250. Oc 36,207. O d. 50,000. Oe. 58,621.
Everly Company’s variable selling and administrative expenses are 12% of net sales. Fixed expenses are $50,000 per quarter. The sales budget shows expected sales of $200,000 and $240,000 in the first and second quarters, respectively. What are the total budgeted selling and administrative expenses in quarter 2?
As a newly hired management accountant, you have been asked to prepare a profit plan for the company for which you work. As part of this task, you've been asked to do some what-if analyses. Following is the budgeted Information regarding the coming year: Selling price per unit Variable cost per unit Fixed costs (per year) Required: $ 100.00 60.00 1,113,040 1. What is the breakeven volume, in units and dollars, for the coming year? 2. Assume that the goal of the company is to earn a pretax (operating) profit of $316,000 for the coming year. How many units would the company have to sell to achieve this goal? 3. Assume that of the $60 variable cost per unit the labor-cost component is $27. Current negotiations with the employees of the company indicate some uncertainty regarding the labor cost component of the variable cost figure presented above. What is the effect on the breakeven point in units if selling price and fixed costs are as planned, but the labor cost for the coming year is…
← The operating budget for a certain company shows a net income of $353,920. To achieve this, the company is targeting sales of $644,000, variable costs of $283.360, and fixed costs of $6,720. Compute the break-even point in sales dollars. The break-even point in sales dollars is $ (Round to the nearest cent as needed Round att intermediate values to six decimal places as needed.)
Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted unit sales 22,000 23,000 20,000 20,000 The company’s variable selling and administrative expense per unit is $2.10. Fixed selling and administrative expenses include advertising expenses of $15,000 per quarter, executive salaries of $41,000 per quarter, and depreciation of $21,000 per quarter. In addition, the company will make insurance payments of $4,000 in the first quarter and $4,000 in the third quarter. Finally, property taxes of $6,400 will be paid in the second quarter. Required: Prepare the company’s selling and administrative expense budget for the upcoming fiscal year. Note: Round "Per Unit" answers to 2 decimal places.
A company's flexible budget for 15,000 units of production reflects sales of $330,000; variable costs of $90,000; and fixed costs of $97,500. Calculate the expected level of income if the company produces and sells 18,000 units.
Weller Company's budgeted unit sales for next year are provided below: 1st Quarter 2nd Quarter 3rd Quarter 28,000 29,000 21,000 Budgeted unit sales The company's variable selling and administrative expense per unit is $2.70. Fixed selling and administrative expenses include advertising expenses of $13,000 per quarter, executive salaries of $47,000 per quarter, and depreciation of $27,000 per quarter. In addition, the company will make insurance payments of $4,000 in the first quarter and $4,000 in the third quarter. Finally, property taxes of $6,800 will be paid in the second quarter. Required: Prepare the company's selling and administrative expense budget for next year. Note: Round "Per Unit" answers to 2 decimal places. Variable selling and administrative expense per unit Variable selling and administrative expense Fixed selling and administrative expenses: 4th Quarter 26,000 Total fixed selling and administrative expenses Total selling and administrative expenses Weller Company…