Question

The budgeted unit sales of Weller Company for the upcoming fiscal year are provided below: Budgeted unit sales 1st Quarter 35,000 2nd Quarter 37,000 3rd Quarter 28,000 4th Quarter 33,000 The company's variable selling and administrative expense per unit is $3.40. Fixed selling and administrative expenses include advertising expenses of $12,000 per quarter, executive salaries of $53,000 per quarter, and depreciation of $34,000 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 $8,200 will be paid in the second quarter. Required: Prepare the company's selling and administrative expense budget for the upcoming fiscal year. (Round "Variable cost" answers to 2 decimal places.) Weller Company Selling and Administrative Expense Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year 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

Quarter 3 28000 3.40 95200 Quarter 4 | Total year 33000 133000 3.40 3.400 112200 452200 Weller company Selling and Administrative Expense Budget Quarter 1 Quarter 2 Budgeted units sales 35000 37000 Variable Selling and administrative expense per unit 3.40 Variable expense (A) L 119000 125800 Fixed selling and administrative expenses: Advertising 12000 12000 Executive salaries 530001 53000 Insurance 5000 Property taxes 8200 Depreciation 34000 34000 Total Fixed expenses (B) 104000 107200 Total selling and administrative expenses (A+B) 223000 233000 Less: Depreciation 34000 34000 Cash disbursements for selling and administrative expenses 189000 199000 12000 53000 5000 12000 53000 34000 104000 199200 34000 165200 34000 99000 211200 34000 177200 48000 212000 10000 8200 136000 414200 866400 136000 730400