Question

Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: 1st Quarter 31,000 2nd Quarter 33,000 Budgeted unit sales 3rd Quarter 24,000 4th Quarter 29,000 The company's variable selling and administrative expense per unit is $3.00. Fixed selling and administrative expenses include advertising expenses of $8,000 per quarter, executive salaries of $50,000 per quarter, and depreciation of $30,000 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 $7,000 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 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

Weller Company
Selling and Administrative Expenses Budget
	Qtr. 1	Qtr. 2	Qtr. 3	Qtr. 4	Year
Planned sales	31,000	33,000	24,000	29,000	117,000
Variable Selling and Administrative Expense per unit	3.00	3.00	3.00	3.00	3.00
Variable Selling and Administrative Expense	93,000	99,000	72,000	87,000	351,000
Fixed Selling and Administrative Expenses
Advertising Expenses	8,000	8,000	8,000	8,000	32,000
Executive Salaries	50,000	50,000	50,000	50,000	200,000
Depreciation	30,000	30,000	30,000	30,000	120,000
Insurance	5,000	-	5,000	-	10,000
Property Taxes	-	7,000	-	-	7,000
Total Fixed Selling and Administrative Expenses	93,000	95,000	93,000	88,000	369,000
Total Selling and Administrative Expenses	186,000	194,000	165,000	175,000	720,000
Depreciation	(30,000)	(30,000)	(30,000)	(30,000)	(120,000)
Cash disbursements for Selling and Administrative Expenses	156,000	164,000	135,000	145,000	600,000