Question

Weller Company's budgeted unit sales for the upcoming fiscal year are provided below:

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
Budgeted unit sales	35,000	37,000	28,000	33,000

The company’s variable selling and administrative expense per unit is $3.40. Fixed selling and administrative expenses include advertising expenses of $12,000 per quarter, executive salaries of $53,000 per quarter, and depreciation of $34,000 per quarter. In addition, the company will make insurance payments of $5,000 in the first quarter and $5,000 in the third quarter. Finally, property taxes of $8,200 will be paid in the second quarter.

Required:Prepare the company’s selling and administrative expense budget for the upcoming fiscal year. (Round "Per Unit" answers to 2 decimal places.)

Answer 1

Selling and Administrative Expense Budget
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Budgeted Unit Sales	35000	37000	28000	33000	133000
Variable Selling and administrative Expense per Unit	3.4	3.4	3.4	3.4	3.4
Variable Selling and administrative Expense	119000	125800	95200	112200	452200
Fixed Selling and administrative Expense:
Property taxes		8200			8200
insurance	5000		5000		10000
Executive Salaries	53000	53000	53000	53000	212000
Depreciation	34000	34000	34000	34000	136000
Advertising	12000	12000	12000	12000	48000
Total Fixed Selling and administrative Expense:	104000	107200	104000	99000	414200
Total Selling and administrative Expense:	223000	233000	199200	211200	866400
Less: Depreciation	34000	34000	34000	34000	136000
Cash disbursements for selling and adminstrative Expenses	189000	199000	165200	177200	730400