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: 1st Quarter 20,000 2nd Quarter 26,000 3rd Quarter 19.000 4th Quarter 18,000 Budgeted unit sales The company's variable selling and administrative expense per unit is $1.90. Fixed selling and administrative expenses include advertising expenses of $13,000 per quarter, executive salaries of $38,000 per quarter, and depreciation of $19,000 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 sacond quarter. Required: Prepare the company's selling and administrative expense budget for the upcoming fiscal year. Round "Variable cost" answers to 2 decimal places.) Weller Company Selling and Administrative Expense Budget 1st Quarter 2nd Quarter 3rd Quarter 4th QuarterYear Fixed selling and administrative expenses: Total fixed selling and administrative expenses Total selling and administrative expenses Cash disbursements for selling and administrative expenses

Explanation / Answer

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Budgeted unit sales 20000 26000 19000 18000 83000 Variable selling and admin. Expense per unit 1.9 1.9 1.9 1.9 1.9 Total Variable expenses 38000 49400 36100 34200 157700 Fixed selling and admin expense: Advertising 13000 13000 13000 13000 52000 Executive Salaries 38000 38000 38000 38000 152000 Insurance 4000 4000 8000 Property taxes 7200 7200 Depreciation 19000 19000 19000 19000 76000 Total fixed expenses 74000 77200 74000 70000 295200 Total selling and administrative expenses 112000 126600 110100 104200 452900 Less depreciation 19000 19000 19000 19000 76000 Cash disbursements for selling and administrative expenses 93000 107600 91100 85200 376900

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