Question

Question 5

Sheridan Company classifies its selling and administrative expense budget into variable and fixed components. Variable expenses are expected to be $26,620 in the first quarter, and $5,370 increments are expected in the remaining quarters of 2020. Fixed expenses are expected to be $40,320 in each quarter.

Prepare the selling and administrative expense budget by quarters and in total for 2020.

SHERIDAN COMPANY Selling and Administrative Expense Budget For the Quarter Ending December 31, 2020For the Year Ending December 31, 2020December 31, 2020
	Quarter
	1		2		3		4		Year
Direct LaborDirect MaterialsFixed ExpensesProduction UnitsSalesTotal Selling and Administrative ExpensesVariable Expenses	$		$		$		$		$
Direct LaborDirect MaterialsFixed ExpensesProduction UnitsSalesTotal Selling and Administrative ExpensesVariable Expenses
Direct LaborDirect MaterialsFixed ExpensesProduction UnitsSalesTotal Selling and Administrative ExpensesVariable Expenses	$		$		$		$		$

Answer 1

Solution

SHERIDAN COMPANY
Selling and Administrative Expense Budget
For the Year Ending December 31, 2020
	Quarter
	1	2	3	4	Year
Variable Expenses	$         26,620.00	$        31,990.00	$        37,360.00	$       42,730.00	$     138,700.00
Fixed Expenses	$         40,320.00	$        40,320.00	$        40,320.00	$       40,320.00	$     161,280.00
Total Selling and Administrative Expenses Variable Expenses	$         66,940.00	$        72,310.00	$        77,680.00	$       83,050.00	$     299,980.00