Question

Exercise 8-6 Selling and Administrative Expense Budget (LO8-7] Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: 16.66 points Budgeted unit sales 1st Quarter 17,000 2nd Quarter 20,000 3rd Quarter 16,000 4th Quarter 15,000 eBook The company's variable selling and administrative expense per unit is $1.60. Fixed selling and administrative expenses include advertising expenses of $10,000 per quarter, executive salaries of $35,000 per quarter, and depreciation of $16,000 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 $7,000 will be paid in the second quarter. Hint Required: Prepare the company's selling and administrative expense budget for the upcoming fiscal year. (Round "Per Unit" answers to 2 decimal places.) Print References 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: Total fixed selling and administrative expenses Total selling and administrative expenses Cash disbursements for selling and administrative expenses

Answer 1

Selling and administrative expense budget

	1st quarter	2nd quarter	3rd quarter	4th quarter	Year
Budgeted unit sales	17000	20000	16000	15000	68000
Variable selling and administrative expense per unit	1.60	1.60	1.60	1.60	1.60
Variable selling and administrative expense	27200	32000	25600	24000	108800
Fixed selling and administrative expense
Advertising expense	10000	10000	10000	10000	40000
Executive salaries	35000	35000	35000	35000	140000
Depreciation	16000	16000	16000	16000	64000
Insurance expense	5000		5000		10000
Property taxes		7000			7000
Total fixed selling and administrative expense	66000	68000	66000	61000	261000
Total Selling and administrative expense	93200	100000	91600	85000	369800
Less: Depreciation	-16000	-16000	-16000	-16000	-64000
Cash disbursement on selling and administrative expense	77200	84000	75600	69000	305800