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16 March, 21:07

The budgeted unit sales of Weller Company for the upcoming fiscal year are provided below:1st Quarter 2nd Quarter 3rd Quarter 4th QuarterBudgeted unit sales 24,000 25,000 21,000 22,000

The company's variable selling and administrative expense per unit is $2.30. Fixed selling and administrative expenses include advertising expenses of $9,000 per quarter, executive salaries of $44,000 per quarter, and depreciation of $23,000 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 $8,600 will be paid in the second quarter. Prepare the company's selling and administrative expense budget for the upcoming fiscal year. (Round "Variable cost" answers to 2 decimal places.)

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  1. 16 March, 23:35
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    Total cost = $392,500

    Explanation:

    Giving the following information:

    1st Quarter = 24,000 units

    2nd Quarter = 25,000

    3rd Quarter = 21,000

    4th Quarter = 22,000

    The company's variable selling and administrative expense per unit is $2.30.

    Fixed selling and administrative expenses include advertising expenses of $9,000 per quarter, executive salaries of $44,000 per quarter. Also, the company will make insurance payments of $4,000 in the first quarter and $4,000 in the third quarter. Finally, property taxes of $8,600 will be paid in the second quarter.

    We will assume that insurance and taxes are for offices and properties of the selling and administrative department.

    1st quarter:

    Variable cost = 2.3*24,000 = 55,200

    Fixed expense = 9,000 + 44,000 = 53,000

    Insurance = 4,000

    Total = $112,200

    2nd quarter:

    Variable cost = 2.3*25,000 = 57,500

    Fixed expense = 9,000 + 44,000 = 53,000

    Property taxes = 8,600

    Total = $71,400

    3rd quarter:

    Variable cost = 2.3*21,000 = 48,300

    Fixed expense = 9,000 + 44,000 = 53,000

    Insurance = 4,000

    Total = $105,300

    4th quarter:

    Variable cost = 2.3*22,000 = 50,600

    Fixed expense = 9,000 + 44,000 = 53,000

    Total = $103,600

    Total cost = $392,500
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