Question

Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: 1st Quarter 33,000 2nd Quarter 35,000 3rd Quarter 26,000 4th Quarter 31,000 Budgeted unit sales The company's variable selling and administrative expense per unit is $3.20. Fixed selling and administrative expenses include advertising expenses of $10,000 per quarter, executive salaries of $53,000 per quarter, and depreciation of $32,000 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 $9.200 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

Answer 1

Weller Company
Selling and administrative Budget
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Budgeted unit sales	33,000	35,000	26,000	31,000	125,000
Variable selling admin expense per unit	$           3.20	$            3.20	$           3.20	$           3.20	$         3.20
variable selling and admin expense	$    105,600	$     112,000	$       83,200	$       99,200	$ 400,000
Fixed selling and admin expenses
Advertising	$      10,000	$        10,000	$       10,000	$       10,000	$    40,000
Executive salaries	$      53,000	$        53,000	$       53,000	$       53,000	$ 212,000
Insurance	$        5,000		$         5,000		$    10,000
Property taxes		$          9,200			$      9,200
Depreciation	$      32,000	$        32,000	$       32,000	$       32,000	$ 128,000
Total Fixed selling and admin. Expenses	$    100,000	$     104,200	$    100,000	$       95,000	$ 399,200
Total selling and admin. Expenses	$    205,600	$     216,200	$    183,200	$    194,200	$ 799,200
Less: Depreciation expenses	$      32,000	$        32,000	$       32,000	$       32,000	$ 128,000
Cash disbursment for selling and admin. Expenses	$    173,600	$     184,200	$    151,200	$    162,200	$ 671,200

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