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	34,000	36,000	27,000	32,000

The company’s variable selling and administrative expense per unit is $3.30. Fixed selling and administrative expenses include advertising expenses of $11,000 per quarter, executive salaries of $53,000 per quarter, and depreciation of $33,000 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 $7,200 will be paid in the second quarter.

Required:

Prepare the company’s selling and administrative expense budget for the upcoming fiscal year.

Answer 1

Required: Prepare the company’s selling and administrative expense budget for the upcoming fiscal year.

	1st quarter	2nd quarter	3rd quarter	4th quarter	Year
Unit Sales	34000	36000	27000	32000	129000
Variable selling and administrative expense per unit	3.30	3.30	3.30	3.30	3.30
Variable selling and administrative expense	112200	118800	89100	105600	425700
Fixed selling and administrative expense
Advertising expense	11000	11000	11000	11000	44000
executive salaries	53000	53000	53000	53000	212000
Depreciation expense	33000	33000	33000	33000	132000
Insurance expense	4000		4000		8000
Property taxes		7200			7200
Total fixed selling and administrative expense	101000	104200	101000	97000	403200
Total selling and administrative expense	213200	223000	190100	202600	828900