Zelia, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $50,000 in January, $60,000 in February, and $70,000 in March. Variable and fixed expenses are as follows: Variable Expenses: Power cost (20% of sales) Miscellaneous expenses: (10% of sales) Fixed Expenses: Salaries expense: $10,000 per month Rent expense: $5,000 per month Depreciation expense: $1,400 per month Power cost/fixed portion: $500 per month Miscellaneous expenses/fixed portion: $1,000 per month Using the information above, calculate the amount of budgeted selling and administrative expenses for the month of February. A. $18,000 B. $32,900 C. $38,900 D. $35,900 Click to select your
Zelia, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $50,000 in January, $60,000 in February, and $70,000 in March. Variable and fixed expenses are as follows: Variable Expenses: Power cost (20% of sales) Miscellaneous expenses: (10% of sales) Fixed Expenses: Salaries expense: $10,000 per month Rent expense: $5,000 per month Depreciation expense: $1,400 per month Power cost/fixed portion: $500 per month Miscellaneous expenses/fixed portion: $1,000 per month Using the information above, calculate the amount of budgeted selling and administrative expenses for the month of February. A. $18,000 B. $32,900 C. $38,900 D. $35,900 Click to select your
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
100%
Zelia, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of
$50,000
in January,
$60,000
in February, and
$70,000
in March. Variable and fixed expenses are as follows:Variable Expenses:
Power cost
(20%
of sales)Miscellaneous expenses:
(10%
of sales)Fixed Expenses:
Salaries expense:
$10,000
per monthRent expense:
$5,000
per month$1,400
per monthPower cost/fixed portion:
$500
per monthMiscellaneous expenses/fixed portion:
$1,000
per monthUsing the information above, calculate the amount of budgeted selling and administrative expenses for the month of February.
$18,000
$32,900
$38,900
$35,900
Click to select your
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