The Selling and Administrative Budget typically includes only fixed corporate expenses.
True
False
False | |
The selling and administrative budget includes planned (budgeted) operating expenses excluding the direct manufacturing costs. Hence the statement is false. Comment if you face any |
The Selling and Administrative Budget typically includes only fixed corporate expenses. True False
The selling and administrative budget is typically prepared before the cash budget. True or False
The selling and administrative expenses budget includes a. fixed production expense. Ob. overhead. c. cost of goods sold. d. variable cost of selling. Oe. All of these choices are correct.
Variable selling and administrative expenses are $1.05 per bag of chips sold. Fixed selling and administrative expenses are $40,000 per month. These costs are not itemized, i.e., the budget has only two line items – variable operating expenses and fixed operating expenses. Prepare an Operating Expenses budget.
Rado Company classifies its selling and administrative expenses budget into variable and fixed components. It expects variable expenses to be $25,500 in the first quarter, and expects $5,400 increments in the remaining quarters of 2020. It expects fixed expenses to be $40,900 in each quarter. Prepare the selling and administrative expenses budget by quarters for 2020. RADO COMPANY Selling and Administrative Expense Budget For the Year Ending December 31, 2020 Quarter 1 2 3 4 Year Variable costs $ $...
Elbert Company classifies its selling and administrative expense budget into variable and fixed components. Variable expenses are expected to be $24,000 in the first quarter, and $4,000 increments are expected in the remaining quarters of 2017. Fixed expenses are expected to be $40,000 in each quarter. Prepare the selling and administrative expense budget by quarters and in total for 2017. ELBERT COMPANY Selling and Administrative Expense Budget For the Quarter Ending December 31, 2017For the Year Ending December 31, 2017December...
Preparing a Selling and Administrative Expenses Budget Fazel Company makes and sells paper products. In the coming year, Fazel expects total sales of $19,800,000. There is a 4% commission on sales. In addition, fixed expenses of the sales and administrative offices include the following: Salaries $ 960,000 Utilities 365,000 Office space 230,000 Advertising 1,200,000 Required: Prepare a selling and administrative expenses budget for Fazel Company for the coming year. Fazel Company Advertising Required: Prepare a selling and administrative expenses budget...
The company’s variable selling and administrative expense per unit is $3.30. Fixed selling and administrative expenses include advertising expenses of $11,000 per quarter, executive salaries of $53,000 per quarter, and depreciation of $33,000 per quarter. In addition, the company will make insurance payments of $4,000 in the first quarter and $4,000 in the third quarter. Finally, property taxes of $7,200 will be paid in the second quarter. Required: Prepare the company’s selling and administrative expense budget for the upcoming...
Kirkland Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2020, the following data are available. 1. Sales: 20,700 units quarter 1; 22,500 units quarter 2. 2. Variable costs per dollar of sales: sales commissions 5%, delivery expense 2%, and advertising 3%. 3. Fixed costs per quarter: sales salaries $10,300, office salaries $6,310, depreciation $4,350, insurance $1,650, utilities $890, and repairs expense $710. 4. Unit selling price: $24....
Selling and administrative expenses are subtracted from gross profit to obtain operating income. True False
Schuepfer Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 2,000 units are planned to be sold in March. The variable selling and administrative expense is $4.70 per unit. The budgeted fixed selling and administrative expense is $35,700 per month, which includes depreciation of $3,500 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the March selling and...