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