Question

Webster Corporation's monthly projected general and administrative expenses include $4,500 administrative salaries, $1,900 of other cash administrative expenses, $2,100 of depreciation expense on the administrative equipment, and .5% monthly interest on an outstanding bank loan of $25,000. Compute the total budgeted general and administrative expenses budget per month.

Answer 1

$8,500

Step-by-step explanation:

Total budgeted general and administrative expenses are the compulsory daily cost expended to ensure that a company's operations is maintained irrespective of whether the company is making profit or not.

Examples of general and administrative expense includes rent, utility bill, insurance, depreciation of office furniture, insurance and wages etc.

Therefore,

Total budgeted general and administrative expenses budgeted per month = Administrative salaries + Other cash administrative expenses + Depreciation

= $4,500 + $1,900 + $2,100

= $8,500