Question

Weller Company's budgeted unit sales for the upcoming fiscal year are provided below 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 18,000 Budgeted unit sales 22,000 17,000 16,000 The company's variable selling and administrative expense per unit is $1.70. Fixed selling and administrative expenses include advertising expenses of $11,000 per quarter, executive salaries of $38,000 per quarter, and depreciation of $17,000 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 $8,200 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 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

Answer 1

Solution

WELLER COMPANY
SELLING AND ADMINISTRATIVE EXPENSE BUDGET
	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Total
Budgeted Unit sales	18000	22000	17000	16000	73000
variable Selling and Administrative expenses	$         30,600.00	$        37,400.00	$        28,900.00	$       27,200.00	$     124,100.00
Fixed Selling and Administrative expenses
Advertising Expense	$         11,000.00	$        11,000.00	$        11,000.00	$       11,000.00	$        44,000.00
Executive Salaries	$         38,000.00	$        38,000.00	$        38,000.00	$       38,000.00	$     152,000.00
Depreciation	$         17,000.00	$        17,000.00	$        17,000.00	$       17,000.00	$        68,000.00
Insurance	$           4,000.00		$          4,000.00		$          8,000.00
Property taxes		$           8,200.00			$          8,200.00
Total Fixed Selling and Administrative expenses	$         70,000.00	$        74,200.00	$        70,000.00	$       66,000.00	$     280,200.00
Total Selling and Administrative expenses	$      100,600.00	$      111,600.00	$        98,900.00	$       93,200.00	$     404,300.00
Less: Non cash expense (deprectaion)	$         17,000.00	$        17,000.00	$        17,000.00	$       17,000.00	$        68,000.00
Cash Disbursement for selling and administrative expenses	$         83,600.00	$        94,600.00	$        81,900.00	$       76,200.00	$     336,300.00