Weller Company\'s budgeted unit sales for the upcoming fiscal year are provided

Question

Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted unit sales 19,000 24,000 18,000 17,000 The company's variable selling and administrative expense per unit is $1.80. Fixed selling and administrative expenses include advertising expenses of $12,000 per quarter, executive salaries of $38,000 per quarter, and depreciation of $18,000 per quarter. In addition, the company will make insurance payments of $5,000 in the first quarter and $5,000 in the third quarter. Finally, property taxes of $6,200 will be paid in the second quarter. Required: Prepare the company's selling and administrative expense budget for the upcoming fiscal year. (Round "Per Unit" answers to 2 decimal places.) Weller Company Selling and Administrative Expense Budget 1st Quarter 2nd Quarter 3rd Quarter 4th QuarterYear Variable selling and administrative expense per unit Variable selling and administrative expense 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

Waller company   Selling and Administrative expenses Budget Amount in$ Budgeted unit   Q1 Q2 Q3 Q4 Total Variable s& A rate per unit              19,000            24,000            18,000        17,000            78,000 Budgeted variable S & A Expenses                         2                       2                       2                   2 Budgeted fixed S & A Expenses              34,200            43,200            32,400        30,600        1,40,400    Advertising      Salaries              12,000            12,000            12,000        12,000            48,000    Depreciation            38,000            38,000            38,000        38,000        1,52,000    Insurance expenses              18,000            18,000            18,000        18,000            72,000    Property tax expenses                5,000              5,000            10,000 Total fixed S & A expenses                6,200              6,200 Total selling and administrative expenses              73,000            74,200            73,000        68,000        2,88,200 Less : Depreciation          1,07,200        1,17,400        1,05,400        98,600        4,28,600 Cash disbursement for selling and administrative expenses              18,000            18,000            18,000        18,000            89,200            99,400            87,400        80,600        3,56,600

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