Question

Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: Budgeted unit sales 1st Quarter 2nd Quarter 3rd Quarter 23,000 24,000 21,000 4th Quarter 21,000 The company's variable selling and administrative expense per unit is $2.20. Fixed selling and administrative expenses include advertising expenses of $8,000 per quarter, executive salaries of $41,000 per quarter, and depreciation of $22,000 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 $7,400 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 23,000 24,000/ 21,000 21,000 89,000 Budgeted unit sales 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

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Answer 1

Weller company Selling and Administrative Expense Budget Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total year Budgeted units sales 23000 24000 21000 21000 89000 Variable Selling and administrative expense per unit 2.20 2.20 2.20 2.20 2.20 Variable Selling and administrative expense (A) 50600 52800 46200 46200 195800 Fixed selling and administrative expenses: Advertising 8000 8000 8000 8000 32000 Executive salaries 41000 41000 41000 41000 164000 Insurance 5000 5000 10000 Property taxes 7400 7400 Depreciation 22000 22000 22000 22000 88000 Total Fixed selling and administrative expenses (B) 76000 78400 76000 71000 301400 Total selling and administrative expenses (A+B) 126600 131200 122200 117200 497200 Less: Depreciation 22000 22000 22000 22000 88000 Cash disbursements for selling and administrative expenses 104600 109200 100200 95200 409200