Question

The budgeted unit sales of Weller Company for the upcoming fiscal year are provided below:

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Budgeted unit sales 22,000 23,000 20,000 20,000

The company’s variable selling and administrative expense per unit is $2.90. Fixed selling and administrative expenses include advertising expenses of $15,000 per quarter, executive salaries of $50,000 per quarter, and depreciation of $29,000 per quarter. In addition, the company will make insurance payments of $4,000 in the first quarter and $4,000 in the third quarter. Finally, property taxes of $9,000 will be paid in the second quarter.
Required:
Prepare the company’s selling and administrative expense budget for the upcoming fiscal year. (Round "Variable cost" answers to 2 decimal places.)

Answer 1

Variable Selling and Administrative expense

1st Quarter : 22,000 × $2.90 63,800

2nd Quarter: 23,000 × $2.90 66,700

3rd Quarter : 20,000 × $2.90 58,000

4th Quarter : 20,000 × $2.90 58,000

Fixed selling and administrative expenses

advertising expenses

1st Quarter : $15,000

2nd Quarter: $15,000

3rd Quarter : $15,000

4th Quarter : $15,000

executive salaries

1st Quarter : $50,000

2nd Quarter: $50,000

3rd Quarter : $50,000

4th Quarter : $50,000

depreciation

1st Quarter : $29,000

2nd Quarter: $29,000

3rd Quarter : $29,000

4th Quarter : $29,000

insurance

1st Quarter : $4,000

3rd Quarter : $4,000

property taxes

2nd Quarter: $9,000

Selling and administrative expense $639,500

Step-by-step explanation:

The selling and administrative expense budget is a forecast of the future company operations.

The budget has been broken down to quarterly periods

Include Both fixed and Variable selling and administrative expenses in the Budget.