This Question: 3 pts 9 of 27 (4 complete) | > This Test: 100 pts Zetia Inc. has

Question

This Question: 3 pts 9 of 27 (4 complete) | > This Test: 100 pts Zetia Inc. has prepared the operating budget for the frst quarter of the year. The company forecast sales of $40,000 im January, $50,000 in February, and $60,000 in March. Variable and fixed expenses are as follows Power cost (30% of sales) Miscellaneous expenses (5% of sales) Salaries expense: $8,000 per month Rent expense: $4,000 per month Depreciation expense: $1,400 per month Power cost/fixed portion: $500 per month Miscellaneous expenses/fixed portion: $1,000 per month using the information above, calculate the amount of budgeted selling and administrative expenses for the month of February O A. $35,900 OB. S32.400 O c. $28.900 O D. $17,500

Explanation / Answer

50000 sales in february

power cost ( 50000 * 30%) = 15000

miscellaneous expenses ( 50000 * 5%) = 2500

salaries expense = 8000

rent expense = 4000

depreciation expense = 1400

power cost / fixed portion =500

miscellaneous expense / fixed portion = 1000

total = 32400

so answer is B

B. $32400

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