10 Skeete Inc. bases its selling and administrative expense budget on the number

Question

10 Skeete Inc. bases its selling and administrative expense budget on the number of units sold. The variable selling and administrative expense is $4.20 per unit The budgeted fixed selling and administrative expense is $30,310 per month, which includes depreciation of $3,580. The remainder of the fixed selling and administrative expense represents current cash flows. The sales budget shows 2,600 units are planned to be sold in November Required Prepare the selling and administrative expense budget for November Cash disbursement for selling and administrative expenses

Explanation / Answer

Cash disbursement for selling and administrative expenses=(2600*4.2)+30310-3580= 37650

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