Question

Crane & Hill Fabricators produces commemorative bricks that organizations use for fundraising projects. Aaron Crane, the company's vice president of marketing, has prepared the following sales forecast for the first six months of the coming year. The company plans to sell the bricks for $9 each January February March April May June 12,200 23,790 21,350 29,000 23,000 20,000 Crane & Hill Fabricators' marketing department has identified the following monthly expenses that will be needed to support the company's sales and administrative functions. Depreciation Sales staff salaries Advertising Executive salaries Miscellaneous $6,100 $15,250 $610 $6,100 $305 In addition to these monthly expenses, the company will pay a commission to its salespeople equal to 3% of the sales revenue from each brick sold. The company expects bad debt expense to be 2% of sales revenue. Prepare Crane & Hill's selling and administrative expense budget for the first quarter of the coming year. (Round answers to decimal places, eg. 5,275.) January February March Quarter

Answer 1

			Jan	Feb	March	Qtr
Budgeted Expenses
Miscellaneous			305	305	305	915
Commission			3294	6423	5765	15482
Bad debts expense			2196	4282	3843	10321
Depreciation			6,100	6,100	6,100	18,300
Sales staff salaries			15,250	15,250	15,250	45,750
Advertising			610	610	610	1830
Executive Salaries			6,100	6,100	6,100	18,300
Total Budgeted Expenses			33855	39,071	37,973	110,898
less:Non cash expense
Depreciation			6,100	6,100	6,100	18,300
Bad debts expense			2196	4282	3843	10321
total cash costs			25,559	28,688	28,030	82,277