Question

Elbert Company classifies its selling and administrative expense budget into variable and fixed components. Variable expenses are expected to be $24,000 in the first quarter, and $4,000 increments are expected in the remaining quarters of 2017. Fixed expenses are expected to be $40,000 in each quarter.

Prepare the selling and administrative expense budget by quarters and in total for 2017.

ELBERT COMPANY Selling and Administrative Expense Budget For the Quarter Ending December 31, 2017For the Year Ending December 31, 2017December 31, 2017
	Quarter
	1		2		3		4		Year
Variable expenses	$		$		$		$		$
Fixed expenses
Total selling and administrative expenses	$		$		$		$		$

Answer 1

Prepare the selling and administrative expense budget by quarters and in total for 2017.

ELBERT COMPANY Selling and Administrative Expense Budget For the Year Ending December 31, 2017
	Quarter
	1		2		3		4		Year
Variable expenses	$24000		$28000		$32000		$36000		$120000
Fixed expenses	40000		40000		40000		40000		160000
Total selling and administrative expenses	$64000		$68000		$72000		$76000		$280000