Question

Homework Saved Help Save& Exit Submit Check my work Exercise 8-6 Selling and Administrative Expense Budget [LO8-7] Weller Company's budgeted unit sales for the upcoming fiscal year are provided below 1st Quarter 22,000 2nd Quarter 23,000 3rd Quarter 20,000 4th Quarter 20,000 Budgeted unit sales The company's variable selling and administrative expense per unit is $2.10. Fixed selling and administrative expenses include advertising expenses of $15,000 per quarter, executive salaries of $41,000 per quarter, and depreciation of $21,000 per quarter. In addition, the company will make insurance payments of $4,000 in the first quarter and $4,000 in the third quarter. Finaly, property taxes of $6,400 will be paid in the second quarter. Required: Prepare the company's selling and administrative expense budget for the upcoming fscal year. (Round "Per Uni' answers to 2 decimal places.) Weller Company Selling and Administrative Expense Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year < Prey 5of6 Next >

Answer 1

Selling and administrative expense budget :

	1st quarter	2nd quarter	3rd quarter	4th quarter	Year
Sales unit	22000	23000	20000	20000	85000
Variable selling and administrative expense per unit	2.10	2.10	2.10	2.10	2.10
Variable selling and administrative expense	46200	48300	42000	42000	178500
Fixed selling and administrative expense
Advertising expense	15000	15000	15000	15000	60000
Executive salaries	41000	41000	41000	41000	164000
Depreciation	21000	21000	21000	21000	84000
Insurance expense	4000		4000		8000
Property taxes		6400			6400
Total fixed selling and administrative expense	81000	83400	81000	77000	322400
Total selling and administrative expense	127200	131700	123000	119000	500900
Less; Depreciation	-21000	-21000	-21000	-21000	-84000
Cash disbursment for selling and administrative expense	106200	110700	102000	98000	416900