Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: **Exercise 8-6 (Static) Selling and Administrative Expense Budget [LO8-7]**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 | 15,000 | 16,000 | 14,000 | 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 the upcoming fiscal year. **(Round "Per Unit" answers to 2 decimal places.)****Weller Company****Selling and Administrative Expense Budget**| | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Year ||---|---|---|---|---|---|| Variable selling and administrative expense per unit | | | | | || Variable selling and administrative expense | | | | | || Fixed selling and administrative expenses: | | | | | || Advertising | | | | | || Executive salaries | | | | | || Depreciation | | | | | || Insurance | | | | | || Property taxes | | | | | || **Total fixed selling and administrative expenses** | | | | | || **Total selling and administrative expenses** | | | | | || **Cash disbursements for selling and administrative expenses** | | | | | |**Explanation of Table and How to Use It:**This table is a detailed budget plan for Weller Company's selling and administrative expenses over the upcoming fiscal year, broken down by quarter. Each expense category needs to be calculated and filled in for each quarter and an overall yearly total will be summed up.- **Variable selling and administrative expense per unit:** Calculate this as stated ($2.50) and apply it to the budgeted unit sales for each quarter.

Answer:- Budget meaning:- A budget for selling and distribution expenses lists all budgeted…

Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 15,000 16,000 14,000 13,000 Budgeted unit sales 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 the upcoming fiscal year. (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: Total fixed selling and administrative expenses Total selling and administrative expenses Weller Company Selling and Administrative Expense Budget 1st Quarter 2nd Quarter Cash disbursements for selling and administrative expenses 3rd Quarter 4th Quarter Year

Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 15,000 16,000 14,000 13,000 Budgeted unit sales 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 the upcoming fiscal year. (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: Total fixed selling and administrative expenses Total selling and administrative expenses Weller Company Selling and Administrative Expense Budget 1st Quarter 2nd Quarter Cash disbursements for selling and administrative expenses 3rd Quarter 4th Quarter Year

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

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

Weller Company's budgeted unit sales for the upcoming fiscal year are provided below:

**Exercise 8-6 (Static) Selling and Administrative Expense Budget [LO8-7]**

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 | 15,000 | 16,000 | 14,000 | 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 the upcoming fiscal year. **(Round "Per Unit" answers to 2 decimal places.)**

**Weller Company**

**Selling and Administrative Expense Budget**

| | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Year |
|---|---|---|---|---|---|
| Variable selling and administrative expense per unit | | | | | |
| Variable selling and administrative expense | | | | | |
| Fixed selling and administrative expenses: | | | | | |
| Advertising | | | | | |
| Executive salaries | | | | | |
| Depreciation | | | | | |
| Insurance | | | | | |
| Property taxes | | | | | |
| **Total fixed selling and administrative expenses** | | | | | |
| **Total selling and administrative expenses** | | | | | |
| **Cash disbursements for selling and administrative expenses** | | | | | |

**Explanation of Table and How to Use It:**

This table is a detailed budget plan for Weller Company's selling and administrative expenses over the upcoming fiscal year, broken down by quarter. Each expense category needs to be calculated and filled in for each quarter and an overall yearly total will be summed up.

- **Variable selling and administrative expense per unit:** Calculate this as stated ($2.50) and apply it to the budgeted unit sales for each quarter.

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