Question

Swenson, Inc., sells tire rims. Its sales budget and inventory, purchases, and cost of goods sold budget for the nine months ended September 30, 2016, follow:

Selling and Administrative Expense Budget Nine Months Ended September 30, 2016 Quarter Quarter Quarter Ended Ended Ended Nine-month March 31 June 30 September 30 Total Variable expenses: Total variable expenses Fixed expenses: Total fixed expenses Total selling and administrative expenses

Answer 1

Sales Budget
	March 31st	June 30th	September 30th	Quarter
Budgeted Unit Sales=(A)	120000	170000	145000	435000
	Swenson, Inc.
Schedule of Selling & Administrative Expense Budget
	Quarter ended March 31st	Quarter ended June 30th	Quarter ended September 30th	Nine months total
Variable Expenses
Commission=3% on Sales	$              3,600.00	$              5,100.00	$               4,350.00	$                       13,050.00
Miscellaneous Expense=2% on sales	$              2,400.00	$              3,400.00	$               2,900.00	$                         8,700.00
Total Variable Expense=(A)	$              6,000.00	$              8,500.00	$               7,250.00	$                       21,750.00
Fixed Expenses
Salaries Expense	$              9,000.00	$              9,000.00	$               9,000.00	$                       27,000.00
Rent Expense	$              7,500.00	$              7,500.00	$               7,500.00	$                       22,500.00
Depreciation Expense	$              3,900.00	$              3,900.00	$               3,900.00	$                       11,700.00
Total Fixed Expenses=(B)	$            20,400.00	$            20,400.00	$             20,400.00	$                       61,200.00
Total Selling & Administrative Expenses=(A)+(B)	$            26,400.00	$            28,900.00	$             27,650.00	$                       82,950.00
Working
	March 31st	June 30th	September 31st
Commission 3% on sales	($120000*3%)	($170000*3%)	($145000*3%)
Miscellaneous Expenses	($120000*2%)	($170000*2%)	($145000*2%)
Rent	($2500*3)	($2500*3)	($2500*3)
Salaries	($3000*3)	($3000*$3)	($3000*3)
Depreciation Expense	($1300*3)	($1300*$3)	($1300*3)