Question

Exercise 9-12 Kirkland Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2020, the following data are available. 1. Sales: 20,600 units quarter 1; 22,100 units quarter 2. 2. Variable costs per dollar of sales: sales commissions 5%, delivery expense 2%, and advertising 3%. 3. Fixed costs per quarter: sales salaries $10,000, office salaries $6,130, depreciation $4,760, insurance $2,010, utilities $820, and repairs expense $610. 4. Unit selling price: $21. Prepare a selling and administrative expense budget by quarters for the first 6 months of 2020. (List variable expenses before fixed expense.) KIRKLAND COMPANY Selling and Administrative Expense Budget June 30, 2020For the Quarter Ending June 30, 2020For the Six Months Ending June 30, 2020 Quarter 1 2 Six Months $ $ $     Total Selling and Administrative Expenses    Office Salaries    Depreciation    Total Fixed    Total Variable    Delivery Expense    Utilities    Sales Salaries    Fixed Expenses    Sales Commissions    Advertising    Variable Expenses    Insurance    Repairs Expense    Budgeted Sales in Units         Variable Expenses    Advertising    Budgeted Sales in Units    Delivery Expense    Office Salaries    Depreciation    Fixed Expenses    Sales Salaries    Repairs Expense    Insurance    Total Fixed    Sales Commissions    Total Selling and Administrative Expenses    Total Variable    Utilities         Total Fixed    Total Selling and Administrative Expenses    Utilities    Advertising    Depreciation    Total Variable    Office Salaries    Sales Commissions    Variable Expenses    Repairs Expense    Budgeted Sales in Units    Delivery Expense    Sales Salaries    Fixed Expenses    Insurance     Office SalariesUtilitiesDelivery ExpenseRepairs ExpenseDepreciationVariable ExpensesTotal FixedInsuranceSales CommissionsTotal Selling and Administrative ExpensesSales SalariesBudgeted Sales in UnitsFixed ExpensesTotal VariableAdvertising     Insurance    Sales Salaries    Total Fixed    Office Salaries    Variable Expenses    Fixed Expenses    Total Variable    Total Selling and Administrative Expenses    Repairs Expense    Budgeted Sales in Units    Sales Commissions    Utilities    Advertising    Delivery Expense    Depreciation         Delivery Expense    Total Selling and Administrative Expenses    Total Fixed    Repairs Expense    Sales Salaries    Sales Commissions    Fixed Expenses    Total Variable    Utilities    Insurance    Variable Expenses    Advertising    Budgeted Sales in Units    Depreciation    Office Salaries         Delivery Expense    Office Salaries    Budgeted Sales in Units    Depreciation    Repairs Expense    Fixed Expenses    Sales Salaries    Insurance    Sales Commissions    Total Fixed    Total Selling and Administrative Expenses    Advertising    Total Variable    Utilities    Variable Expenses         Advertising    Budgeted Sales in Units    Repairs Expense    Insurance    Office Salaries    Utilities    Sales Commissions    Sales Salaries    Total Fixed    Delivery Expense    Total Selling and Administrative Expenses    Depreciation    Total Variable    Fixed Expenses    Variable Expenses         Sales Commissions    Depreciation    Repairs Expense    Fixed Expenses    Advertising    Insurance    Sales Salaries    Total Fixed    Variable Expenses    Budgeted Sales in Units    Office Salaries    Total Variable    Total Selling and Administrative Expenses    Delivery Expense    Utilities         Depreciation    Sales Salaries    Repairs Expense    Total Fixed    Office Salaries    Variable Expenses    Delivery Expense    Sales Commissions    Advertising    Budgeted Sales in Units    Fixed Expenses    Insurance    Total Selling and Administrative Expenses    Total Variable    Utilities         Delivery Expense    Depreciation    Total Selling and Administrative Expenses    Total Variable    Sales Commissions    Repairs Expense    Total Fixed    Fixed Expenses    Utilities    Insurance    Office Salaries    Variable Expenses    Advertising    Sales Salaries    Budgeted Sales in Units     InsuranceRepairs ExpenseBudgeted Sales in UnitsDelivery ExpenseDepreciationOffice SalariesTotal Selling and Administrative ExpensesAdvertisingSales CommissionsFixed ExpensesSales SalariesTotal FixedTotal VariableUtilitiesVariable Expenses $ $ $

Answer 1

Six Months Total Kirkland Company Selling and administration expenses Budget For the six months Ending June 30, 2020 Quarter 1 2 Budgeted Sales in units 20600 22100 Variable Expenses: Sales Commissions 5% 21630 23205 Delivery expenses 2% 8652 92821 Advertising 3% 12978 13923 Total variable cost 43260 46410 Fixed cost: Sales salaries 10000 100001 Office salaries 6130 6130 Depreciation 4760 4760 Insurance 2010 2010 Utilities 820 820 Repair expenses 610 Total fixed expenses 24330 24330 Total Selling and administrative expenses 67590 70740 44835 17934| 26901| 89670 20000 12260 9520 4020 1640 1220 48660 138330 610