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	24,000	25,000	21,000	22,000

The company’s variable selling and administrative expense per unit is $2.30. Fixed selling and administrative expenses include advertising expenses of $9,000 per quarter, executive salaries of $44,000 per quarter, and depreciation of $23,000 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 $8,600 will be paid in the second quarter.

  
Required:

Prepare the company’s selling and administrative expense budget for the upcoming fiscal year. (Input all amounts as positive values. Round "Variable cost" answers to 2 decimal places.)

Answer 1

Selling Admin Oh budget
				Q1	Q2	Q3	Q4	Year
Budgeted sales units			24000	25000	21000	22000	92000
Variable Selling Admin Oh @ 2.30 per unit	55200	57500	48300	50600	211600
Fixed Selling admin oh:
Advertising expense			9000	9000	9000	9000	36000
Executive salaries			44000	44000	44000	44000	176000
Depreciation			23000	23000	23000	23000	92000
Insurance expense			4000	0	4000	0	8000
Property tax			0	8600	0	0	8600
Total Fixed selling admin expenses	80000	84600	80000	76000	320600
Total Selling admin expense		135200	142100	128300	126600	532200
Less: Depreciation			23000	23000	23000	23000	92000
Cash disbursals for Selling admin expenses	112200	119100	105300	103600	440200