Question

Wala Incorporated bases its selling and administrative expense budget on the number of units sold. The budgeted selling and administrative expense per unit is $10. If the budgeted number of units to be sold is 500, what is the total budgeted selling and administrative expense?

Answer 1

The total budgeted selling and administrative expense for Wala Incorporated, given the expense per unit of $10 and a budgeted sale of 500 units, is $5,000.

Step-by-step explanation:

The student asked about calculating the total budgeted selling and administrative expense based on the given budgeted expense per unit and the number of units sold by Wala Incorporated. To find the total budgeted expense, we will multiply the budgeted expense per unit by the budgeted number of units sold.

Since the budgeted selling and administrative expense per unit is $10, and the budgeted number of units to be sold is 500, the total budgeted selling and administrative expense can be calculated as follows:

• Total Budgeted Selling and Administrative Expense = Budgeted Selling and Administrative Expense per Unit × Budgeted Number of Units Sold
• Total Budgeted Selling and Administrative Expense = $10 × 500
• Total Budgeted Selling and Administrative Expense = $5,000

Therefore, the total budgeted selling and administrative expense for Wala Incorporated is $5,000.