Question

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

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

Budgeted unit sales
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
15,000 16,000 14,000 13,000
The company’s variable selling and administrative expense per unit is \$2.50. Fixed selling and administrative expenses include advertising expenses of \$8,000 per quarter, executive salaries of \$35,000 per quarter, and depreciation of \$20,000 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 \$8,000 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.)

 Weller Company Selling and Administrative Expense Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Units (a) 15,000 16,000 14,000 13,000 58,000 Variable selling and administrative expense per unit (b) \$2.50 \$2.50 \$2.50 \$2.50 \$2.50 Total Variable selling and administrative expense (a x b) = (c ) \$37,500 \$40,000 \$35,000 \$32,500 \$145,000 Fixed selling and administrative expenses: Advertising expense \$8,000 \$8,000 \$8,000 \$8,000 \$32,000 Executive salaries \$35,000 \$35,000 \$35,000 \$35,000 \$140,000 Insurance payments \$5,000 \$5,000 \$10,000 Property taxes \$8,000 \$8,000 Depreciation \$20,000 \$20,000 \$20,000 \$20,000 \$80,000 Total Fixed selling and administrative expenses (d) \$68,000 \$71,000 \$68,000 \$63,000 \$270,000 Total selling and administrative expenses (c+d) \$105,500 \$111,000 \$103,000 \$95,500 \$415,000

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