Question

At the Ford Autocycle Corporation for April, the number of units to be sold is budgeted to be 4,000. Ford Autocycle sold. The variable selling and administrative expense is $4.10 per unit. The budgeted fixed selling and administrative expense is $30,150 per month, which includes depreciation of $3,420. The remainder of the fixed selling and administrative expense represents current cash flows. epares the budget for selling and administrative expense based on the budgeted number of units Required: Prepare the selling and administrative expense budget for April. April Budgeted unit sales Variable selling and administrative expense per unit Variable selling and administrative expense Fixed selling and administrative expense Total selling and administrative expense Cash disbursements r selling and administrative expenses

Answer 1

	April
Budgeted unit Sales	4000
Variable selling and administrative expense per unit	4.1
Variable selling and administrative expense	16400
Fixed selling and administrative expense	30150
Total Selling and administrative expense	46550
Less: Depreciation	-3420
Cash disbursement for selling and administrative expense	43130