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Bigelow Company budgets payroll at $4,000 per month plus a percentage of monthly

ID: 2504920 • Letter: B

Question

Bigelow Company budgets payroll at $4,000 per month plus a percentage of monthly sales. The June operation expense budget includes total payroll of $12,000 with budgeted sales of $160,000. Sales for July are budgeted at $180,000 while purchases of inventory for July are budgeted at $95,000. Depreciation and insurance for July are estimated at $1,000 and $600. Office and adminstrative expenses related to purchasing inventory are budgeted at 10% of purchases for the month. The purchase of $2,500 in equipment and $1,500 in furniture is expected in July.

The total operating expenses budgeted for July are?

Can someone show me how to do this problem? Thanks!

Explanation / Answer

thats nots an answer.... you would have to pick from $14,000 $13,000 $22,000 or $12,000