Question

i dont know if you can help . but i need the schedule of expected cash flows and help wjth the S & A expenses budget. the values for that budget is in the first picture.

The company's monthly selling and administrative expenses are given below: $ 1 per tie Variable: Sales commissions Fixed: Wages and salaries Utilities Insurance Depreciation Miscellaneous $ 31,200 $ 23,100 $ 1,100 $ 1,500 $ 3,400 All selling and administrative expenses are paid during the month, in cash, with the exception of depreciation and insurance expired:

what is the selling and administrative budget per month and for the quarter

Answer 1

Variable cost varies with number of units whereas fixed remains constant irrespective of number of units produced or sold.

SELLING AND ADMINISTRATIVE EXPENSE BUDGET
	APRIL	MAY	JUNE	QTR
Variable expense
commission expense	39000*1=39000	52000*1=52000	63000*1=63000	154000
Fixed expense
wages and salaries expense	31200	31200	31200	93600
Utilities expense	23100	23100	23100	69300
Insurance expense	1100	1100	1100	3300
Depreciation expense	1500	1500	1500	4500
Miscellaneous expense	3400	3400	3400	10200
Total fixed expense	60300	60300	60300	180900
Total selling and administration expense	99300	112300	123300	334900
less:Non cash expense	-1500	-1500	-1500	-4500
Cash disbursement for S &A expense	97800	110800	121800	330400

**Only depreciation is a non cash expense