Question

The budgeted unit sales of Weller Company for the upcoming fiscal year are provided below: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted unit sales 27,000 28,000 20,000 25,000 The company's variable selling and administrative expense per unit is $2.60. Fixed selling and administrative expenses include advertising expenses of $12,000 per quarter, executive salaries of $47.000 per quarter, and depreciation of $26,000 per quarter. In addition, the company will make insurance payments of $5,000 in the first quarter and $5,000 in the third quarter. Finally, property taxes of $8,800 will be paid in the second quarter. Required: Prepare the company's selling and administrative expense budget for the upcoming fiscal year. (Input all amounts as positive values. Round "Variable cost" answers to 2 decimal places.) Weller Company Selling and Administrative Expense Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Fixed selling and administrative expenses: Total fixed selling and administrative expenses Total selling and administrative expenses Cash disbursements for selling and administrative expenses

Answer 1

Solution:

Weller company
Selling and Administrative Expense budget
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Budgeted unit sales	27000	28000	20000	25000	100000
Variable selling and administrative expense per unit	$2.60	$2.60	$2.60	$2.60	$2.60
Variable selling and administrative expense	$70,200	$72,800	$52,000	$65,000	$260,000
Fixed Selling and Administrative expenses:
Advertising Expense	$12,000	$12,000	$12,000	$12,000	$48,000
Executive salaries	$47,000	$47,000	$47,000	$47,000	$188,000
Depreciation	$26,000	$26,000	$26,000	$26,000	$104,000
Insurance Payment	$5,000		$5,000		$10,000
Property Taxes		$8,800			$8,800
Total Fixed Selling and Administrative expenses	$90,000	$93,800	$90,000	$85,000	$358,800
Total Selling and Administrative expenses	$160,200	$166,600	$142,000	$150,000	$618,800
Less: Depreciation	$26,000	$26,000	$26,000	$26,000	$104,000
Cash Disbursements for selling & Adm. Expenses	$134,200	$140,600	$116,000	$124,000	$514,800