Question

Webster Corporation's budgeted sales for February are $318,000. Webster pays sales representatives a commission of 5% of sales dollars. The company pays a sales manager a monthly salary of $3,700 and expects advertising expense of $1,300 per month. Compute the total budgeted selling expenses for February.

Answer 1

The aggregate budgeted selling expense for the month of February amounts to $20,900

Step-by-step explanation:

Selling expense budget is the plan which estimate the selling expense which happen in that period or year or month. It is related to the marketing as well as selling the product to customers. And involve advertising expense, commission, delivery cost and signs.

The aggregate budgeted selling expense for the month of February is computed as:

Aggregate budgeted selling expense = Commission + Monthly Salary of Sales manager + Advertising expense

where

Commission is as:

Commission = Sales × 5%

= $318,000 × 5%

= $15,900

Monthly Salary of Sales manager is $3,700

Advertising expense is $1,300

So,

Aggregate budgeted selling expense = $15,900 + $3,700 + $1,300

Aggregate budgeted selling expense = $20,900