Schuepfer Inc. bases its selling and administrative expense budget on budgeted u

Question

Schuepfer Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 3,200 units are planned to be sold in March. The variable selling and administrative expense is $3.70 per unit. The budgeted fixed selling and administrative expense is $35,820 per month, which includes depreciation of $4,700 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the March selling and administrative expense budget should be:

Explanation / Answer

Total variable selling and administrative expense(3.7*3200) $11840 Total fixed selling and administrative expense(excluding depreciation)(35820-4700) $31120 Total cash disbursements for selling and administrative expenses $42960.

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