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7 July, 07:11

A company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available: Variable Cost Per Unit Sold Monthly Fixed Cost Sales commissions $0.60 $ 6,000 Shipping 1.20 Advertising 0.30 Executive salaries 40,000 Depreciation on office equipment 8,000 Other 0.35 28,000 Expenses are paid in the month incurred. If the company has budgeted to sell 8,000 units in October, how much is the total budgeted variable selling and administrative expenses for October? a. $16,800 b. $18,400 c. $101,600 d. $19,600

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  1. 7 July, 09:18
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    d. $19,600

    Explanation:

    Budgeted Variable Selling & administrative expenses

    Sales Commission (8000 X 0.6) 4800

    Shipping (8000 X 1.2) 9600

    Advertising (8000 X 0.3) 2400

    Other (8000 X 0.35) 2800

    Budgeted Variable Selling &

    administrative expenses 19600

    the answer is Option d. $19,600
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