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 3,300 units are planned to be sold in March. The variable selling and administrative expense is $3.80 per unit. The budgeted fixed selling and administrative expense is $35,830 per month, which includes depreciation of $4,800 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:

Multiple Choice

$31,030

$12,540

$43,570

$48,370

Explanation / Answer

Ans. Option 3rd      $43570 *Calculation: SCHUEPFER INC. Selling & Administration Budget Budget units sales 3300 Variable selling & adm. Exp. 12540 Fixed selling & adm. Exp. 35830 Total selling & adm. Exp. 48370 Less: Depreciation 4800 Cash disbursement for Selling & adm. Exp. 43570

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