Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: 1st Quarter 24,000 2nd Quarter 25,000 3rd Quarter 4th Quarter 21,000 22,000 Budgeted unit sales The company's variable selling and administrative expense per unit is $2.30. Fixed selling and administrative expenses include advertising expenses of $9,000 per quarter, executive salaries of $44,000 per quarter, and depreciation of $23,000 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 $8,600 will be paid in the second quarter. Required: Prepare the company's selling and administrative expense budget for the upcoming fiscal year. (Round "Per Unit" answers to 2 decimal places.)
Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: 1st Quarter 24,000 2nd Quarter 25,000 3rd Quarter 4th Quarter 21,000 22,000 Budgeted unit sales The company's variable selling and administrative expense per unit is $2.30. Fixed selling and administrative expenses include advertising expenses of $9,000 per quarter, executive salaries of $44,000 per quarter, and depreciation of $23,000 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 $8,600 will be paid in the second quarter. Required: Prepare the company's selling and administrative expense budget for the upcoming fiscal year. (Round "Per Unit" answers to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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.
Question
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I need help solving for the remaining cells (highlighted in red).
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Transcribed Image Text:Weller Company's budgeted unit sales for the upcoming fiscal year are provided below:
1st Quarter
24,000
2nd Quarter
25,000
3rd Quarter
21,000
4th Quarter
22,000
Budgeted unit sales
The company's variable selling and administrative expense per unit is $2.30. Fixed selling and administrative expenses include
advertising expenses of $9,000 per quarter, executive salaries of $44,000 per quarter, and depreciation of $23,000 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 $8,600 will be paid in the second quarter.
Required:
Prepare the company's selling and administrative expense budget for the upcoming fiscal year. (Round "Per Unit" answers to 2
decimal places.)
Budgeted unit sales
Variable selling and administrative expense per unit
Variable selling and administrative expense
Fixed selling and administrative expenses:
Advertising
Depreciation
Executive salaries
Insurance
X Answer is complete but not entirely correct.
Weller Company
Selling and Administrative Expense Budget
1st
2nd
Quarter
25,000✔
Quarter
24,000✔
Property taxes
Total fixed selling and administrative expenses
Total selling and administrative expenses
Less: Depreciation
Cash disbursements for selling and administrative expenses
♥
✓
✓
✓
✓
3
3*3
X
$55,200 $ 57,500✔ $
››› ››****
9,000✔
23,000✔
44,000✔
4,000✔
0✓
****<3333
9,000
23,000✔
44,000
0✔
8,600✔
3rd
Quarter
21,000✔
48,300 $
****0003
9,000✔
23,000✔
44,000✔
4,000✔
0✔
4th
Quarter
22,000✔
*********
X
50,600 $ $ 211,600
9,000✔
23,000✔
44,000✔
0✔
Year
0✔
92,000✔
X
*********
36,000✔
92,000✔
176,000✔
8,000✔
8,600✔
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