Chapter 8, Problem 8.6E

To determine

Concept Introduction:

A budget is a financial plan for a future period. The budget is prepared usually for a financial year. Budgets can be prepared for revenue and expenses. Budgets help the company to plan for future income and expenses and evaluate business performance.

An expense budget is prepared for a particular expense. The budgeted expense iscalculating on the basis of their allocation basis.

To prepare: The selling and administrative overhead budget.