Question

Exercise 8-6 Selling and Administrative Expense Budget (LO8-7) 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 30,000 31.000 23.000 28.000 The company's variable selling and administrative expense per unit is $2.90. Fixed selling and administrative expenses include advertising expenses of $15,000 per quarter, executive salaries of $50,000 per quarter, and depreciation of $29.000 per quarter. In addition, the company will make insurance payments of $4,000 in the first quarter and $4,000 in the third quarter. Finally, property taxes of $9,000 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 Variable selling and administrative expense per unit Variable selling and administrative expense Fored selling and administrative expenses Total fixed selling and administrative expenses Total selling and administrative expenses Cash disbursements for selling and administrative expenses

Answer 1

Weller Company Selling and Administrative expense budget 1st quarter 2nd quarter 3rd quarter 4th quarter Year Budgeted unit sales 30000 31000 23000 28000 112000 Variable selling and admin expense per unit $2.90 $2.90' $2.90 $2.90 $2.90 Variable selling and admin expense $87,000.00 $89,900.00 $66,700.00 $81,200.00 $3,24,800.00 Fixed selling and admin expense : Advertising 15,000.00 $ 15,000.00 $ 15,000.00 $ 15,000.00 $ 60,000.00 Executive salaries $ 50,000.00 $ 50,000.00 $ 50,000.00 $ 50,000.00 $ 2,00,000.00 Insurance $ 4,000.00 $ - $ 4,000.00 $ $ 8,000.00 property taxes - $ 9,000.00 $ - $ $ 9,000.00 Depreciation $ 29,000.00 $ 29,000.00 $ 29,000.00 $ 29,000.00 $ 1,16,000.00 Total fixed selling and admin expense $ 98,000.00 $ 1,03,000.00 $ 98,000.00 $ 94,000.00 $ 3,93,000.00 Total selling and admin Expense $ 1,85,000.00 $ 1,92,900.00 $ 1,64,700.00 $1,75,200.00 $ 7,17,800.00 Less : Depreciation $ (29,000.00) $ (29,000.00) $ (29,000.00) $ (29,000.00) $ (1,16,000.00) Cash disbursements for selling and admin expense $1,56,000.00 $ 1,63,900.00 $ 1,35,700.00 $ 1,46,200.00 $ 6,01,800.00