Final Exam FA17 ACG 2071-99437 Th 2-4:45 Test: Final Exam This Question: 1 pt 4-

Question

Final Exam FA17 ACG 2071-99437 Th 2-4:45 Test: Final Exam This Question: 1 pt 4-7 of 50 (1 compete> Zeia, Inc. has prepared the operating budgat far the first quarter of the year. The company forecast sales of $40,000 in January 550,000 in Fabruary, and $60.000 in March Varioble and foed expenses are as 1sa Power cost (40% of sales) Miscelanoon expenses: (10% of sales) Exed Expenses Salaries expense: $8,000 per menth Rent expense: $4,000 per month Depreciation expense: $1,200 per month Power cos4Wixed portion $800 per month Miscellaneous expensesixed portion: $1,000 per month Using the information above, cakulate the amount of budgeted seling and administrative expenses for the month of February O A. $40,000 O B. S2S,000 oc· $35,000 O D. $45000 click to select your answer

Explanation / Answer

calculate selling and administrative expenses for the month of february :

so answer is a) $40000

February Variable expenses Power cost (50000*40%) 20000 Miscellaneous exp (50000*10%) 5000 Fixed expenses salaries exp 8000 Rent expenses 4000 Depreciation exp 1200 Power cost fixed portion 800 Miscellaneous exp 1000 Total selling and administrative exp 40000

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