Question

The following budget information is available for the Arch Company for January Year 2: pped Sales Cost of goods sold Utilities expense Administrative salaries Sales commissions Advertising Depreciation on store equipment Rent on administration building Miscellaneous administrative expenses $860,000 540,000 2,800 100,000 5% of sales 20,000 50,000 60,000 10,000 All operating expenses are paid in cash in the month incurred. Compute total budgeted selling and administrative expenses (excluding interest) amount for January Year 2. Multiple Choice 0 $262,500 0 $283,000 0 $240,000 0 $285,800

Answer 1

Correct answer-------$285,800

Working

Utilities expense	$        2,800.00
Administrative salaries	$    100,000.00
Sales commission (860000 x 5%)	$      43,000.00
Advertising	$      20,000.00
Rent on administrative building	$      60,000.00
Miscellanious administrative expenses	$      10,000.00
Depreciation on store equipment	$      50,000.00
Total budgeted cash sales and administrative expenses	$    285,800.00