Question

The Puyer Corporation makes and sells only one product called a Deb. The company is in the process of preparing its Selling and Administrative Expense Budget for next year. The following budget data are available: Monthly Fixed Cost Variable Cost Per Deb Sold Sales commissions $ 0.96 Shipping $ 1.46 Advertising $ 50,600 $ 0.26 Executive salaries $ 60,600 Depreciation on office equipment $ 20,600 Other $ 40,600 All of these expenses (except depreciation) are paid in cash in the month they are incurred. If the company has budgeted to sell 15,600 Debs in February, then the total budgeted fixed selling and administrative expenses for February is:

Answer 1

The total budgeted fixed selling and administrative expenses for February is $121,800.

The fixed costs include executive salaries, depreciation on office equipment, and other fixed costs. The variable costs are not fixed and will vary with the number of units sold.

Executive salaries: $60,600

Depreciation on office equipment: $20,600

Other fixed costs: $40,600

Total fixed costs = Executive salaries + Depreciation + Other fixed costs

= $60,600 + $20,600 + $40,600

= $121,800

Therefore, the total budgeted fixed selling and administrative expenses for February is $121,800.

Answer 2

Total= $159,552

Step-by-step explanation:

Giving the following information:

The company has budgeted to sell 15,600 Debs in February.

Sales commissions $ 0.96*15,600= 14,976

Shipping $ 1.46 *15,600= 22,776

Executive salaries $ 60,600

Depreciation on office equipment $ 20,600

Other $ 40,600

Total= $159,552