Question

3 Exercises instructions I help Question 5 (of 7) Save & Exit Submit value: 1.00 points The following information is available for Pioneer Company: • Sales price per unit is $130. • November and December, sales were budgeted at 3,040 and 3,450 units, respectively. • Variable costs are 10 percent of sales (4 percent commission, 3 percent advertising, 3 percent shipping). • Fixed costs per month are sales salaries, $5,400; office salaries, $2,500; depreciation, $2,800; building rent, $3,200; insurance, $1,600; and utilities, $800. Required: Determine Pioneer's budgeted selling and administrative expenses for November and December November December Total Budgeted Selling and Administrative Expenses References eBook & Resources

Answer 1

	November	December
Total Budgeted Selling and Administrative Expenses      [Refer working note]	$55,820	$61,150
Working note - Selling and Administrative Expenses
	November	December
Budgeted sales (In units)                                                 (a)	3,040	3,450
Selling price per unit                                                       (b)	$130	$130
Budgeted sales (in dollars)                                             (c = a x b)	$395,200	$448,500
Variable selling and administrative expense                   (d = c x 10%)	$39,520	$44,850
Fixed selling and administrative expenses:
Sales salaries	$5,400	$5,400
Office salaries	$2,500	$2,500
Depreciation	$2,800	$2,800
Rent	$3,200	$3,200
Insurance	$1,600	$1,600
Utilities	$800	$800
Total fixed selling and administrative expense           (e)	$16,300	$16,300
Total Selling and Administrative Expenses            (d + e)	$55,820	$61,150