Question

Sheridan Company makes and sells widgets. The company is in the process of preparing its selling and administrative expense budget for the month. The following budget data are available: Item Variable Cost Per Unit Sold Monthly Fixed Cost Sales commissions $1 $10000 Shipping $3 Advertising $4 Executive salaries $120000 Depreciation on office equipment $4000 Other $2 $6000 Expenses are paid in the month incurred. If the company has budgeted to sell 94000 widgets in October, how much is the total budgeted selling and administrative expenses for October

Answer 1

$1,080,000

Step-by-step explanation:

Calculation to determine how much is the total budgeted selling and administrative expenses for October

October Total budgeted selling and administrative expenses=

[($1 + $3 + $4 + $2) x 94,000] + ($10,000 +

$120,000 + $4,000 + $6,000)

October Total budgeted selling and administrative expenses=(10*94,000)+$140,000

October Total budgeted selling and administrative expenses=$940,000+$140,000

October Total budgeted selling and administrative expenses=$1,080,000

Therefore the total budgeted selling and administrative expenses for October is $1,080,000