The budgeted unit sales of Weller Company for the upcoming fiscal year are provi

Question

The budgeted unit sales of Weller Company for the upcoming fiscal year are provided below:

The company’s variable selling and administrative expense per unit is $3.30. Fixed selling and administrative expenses include advertising expenses of $11,000 per quarter, executive salaries of $53,000 per quarter, and depreciation of $33,000 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 $7,200 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.)

Explanation / Answer

Weller Company Selling and Administrative Expense Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Budgeted Unit Sales (A) 34,000 36,000 27,000 32,000 129,000 Variable Selling and Administrative Expense Per Unit (B) 3.3 3.3 3.3 3.3 3.3 Variable Selling and Administrative Expense (A*B) 112,200 118,800 89,100 105,600 425,700 Fixed Selling and Administrative Expense Advertising 11,000 11,000 11,000 11,000 44,000 Executive Salaries 53,000 53,000 53,000 53,000 212,000 Insurance 4,000 0 4,000 0 8,000 Property Taxes 0 7,200 0 0 7,200 Depreciation 33,000 33,000 33,000 33,000 132,000 Total Fixed Selling and Administrative Expense 101,000 104,200 101,000 97,000 403,200 Total Selling and Administrative Expense 213,200 223,000 190,100 202,600 828,900 Less Depreciation 33,000 33,000 33,000 33,000 132,000 Cash Paid for Selling and Administrative Expenses $180,200 $190,000 $157,100 $169,600 $696,900

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