Question

Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: Budgeted unit sales 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 23,080 24,088 2 1,000 21,000 The company's variable selling and administrative expense per unit is $2.20. Fixed selling and administrative expenses include advertising expenses of $8,000 per quarter, executive salaries of $41,000 per quarter, and depreciation of $22,000 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 $7,400 will be paid in the second quarter. Required: Prepare the company's selling and administrative expense budget for the upcoming fiscal year. (Round "Per Unit" answers to 2 decimal places.) Weller Company Selling and Administrative Expense Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Budgeted unit sales 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

Solution:

Weller company
Selling and Administrative Expense budget
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Budgeted unit sales	23000	24000	21000	21000	89000
Variable selling and administrative expense per unit	$2.20	$2.20	$2.20	$2.20	$2.20
Variable selling and administrative expense	$50,600	$52,800	$46,200	$46,200	$195,800
Fixed Selling and Administrative expenses:
Advertising Expense	$8,000	$8,000	$8,000	$8,000	$32,000
Executive salaries	$41,000	$41,000	$41,000	$41,000	$164,000
Depreciation	$22,000	$22,000	$22,000	$22,000	$88,000
Insurance Payment	$5,000		$5,000		$10,000
Property Taxes		$7,400			$7,400
Total Fixed Selling and Administrative expenses	$76,000	$78,400	$76,000	$71,000	$301,400
Total Selling and Administrative expenses	$126,600	$131,200	$122,200	$117,200	$497,200
Less: Depreciation	$22,000	$22,000	$22,000	$22,000	$88,000
Cash Disbursements for selling & Adm. Expenses	$104,600	$109,200	$100,200	$95,200	$409,200