16. Dodge, Inc. makes and sells umbrellas. The company is in the process of prep

Question

16.
Dodge, Inc. makes and sells umbrellas. The 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
$ 3,000
Shipping
1.20
Advertising
0.30
Page 4
Executive salaries
20,000
Depreciation on office equipment
4,000
Other
0.35
14,000
Expenses are paid in the month incurred. If the company has budgeted to sell 6,000 umbrellas in October, how much is the total budgeted variable selling and administrative expenses for October?
A)
$12,600
B)
$13,800
C)
$76,200
D)
$14,700

Explanation / Answer

($0.60 + $1.20 + $0.30 + $0.35)*6,000 = $14,700

D) $14,700

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