Question

The following information is available for Pioneer Company: Sales price per unit is $120. November and...

The following information is available for Pioneer Company:

  • Sales price per unit is $120.
  • November and December, sales were budgeted at 2,940 and 3,430 units, respectively.
  • Variable costs are 12 percent of sales (6 percent commission, 3 percent advertising, 3 percent shipping).
  • Fixed costs per month are sales salaries, $5,800; office salaries, $2,600; depreciation, $2,600; building rent, $3,500; insurance, $1,400; and utilities, $900.

Required:

Determine Pioneer's budgeted selling and administrative expenses for November and December.

November December
total budgeted selling and administrative expenses
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

If you have any doubts please comment on the answer.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Bear Corp. sells its product for $100. Forecasted sales are 1,500 units in October, 1,600 in...
Bear Corp. sells its product for $100. Forecasted sales are 1,500 units in October, 1,600 in November, and 1,600 in December. Variable costs are based on sales, and consist of commissions (5% of sales), advertising (4%) and shipping (4%). Fixed costs per month are $3,900 sales salaries, $3,100 office salaries, $2,200 depreciation, $2,300 office rent, $1,000 insurance and $1,000 utilities. Required: Prepare Bear Corp’s selling and administrative expense budget for the period October through December. Present monthly totals as well...
Merline Manufacturing makes its product for $65 per unit and sells it for $137 per unit....
Merline Manufacturing makes its product for $65 per unit and sells it for $137 per unit. The sales staff receives a 10% commission on the sale of each unit. Its December income statement follows. MERLINE MANUFACTURING Income Statement For Month Ended December 31, 2017 Sales $ 1,370,000 Cost of goods sold 650,000 Gross profit 720,000 Operating expenses Sales commissions (10%) 137,000 Advertising 214,000 Store rent 24,700 Administrative salaries 43,500 Depreciation—Office equipment 53,500 Other expenses 12,700 Total expenses 485,400 Net income...
Shadee Corp. expects to sell 530 sun visors in May and 380 in June. Each visor...
Shadee Corp. expects to sell 530 sun visors in May and 380 in June. Each visor sells for $18. Shadee’s beginning and ending finished goods inventories for May are 70 and 50 units, respectively. Ending finished goods inventory for June will be 70 units. It expects the following unit sales for the third quarter:       July 530 August 490 September 430 Sixty percent of Shadee’s sales are cash. Of the credit sales, 52 percent is collected in the month of the...
Esteem is a retail company that sells specialized gardening products. The company is considering opening a...
Esteem is a retail company that sells specialized gardening products. The company is considering opening a new store on October 1, Year1. As budget coordinator, you have been asked to prepare a master budget for the first 3 months of the company’s operation. You have gathered the following information: October sales are estimated to be $350000 of which 40 percent will be cash and the remainder will be on credit. The company expects all sales to increase at the rate...
Merline Manufacturing makes its product for $65 per unit and sells it for $143 per unit....
Merline Manufacturing makes its product for $65 per unit and sells it for $143 per unit. The sales staff receives a 10% commission on the sale of each unit. Its December income statement follows. MERLINE MANUFACTURING Income Statement For Month Ended December 31, 2017 Sales $ 1,430,000 Cost of goods sold 650,000 Gross profit 780,000 Operating expenses Sales commissions (10%) 143,000 Advertising 226,000 Store rent 25,300 Administrative salaries 46,500 Depreciation—Office equipment 56,500 Other expenses 13,300 Total expenses 510,600 Net income...
The budgeted unit sales of Weller Company for the upcoming fiscal year are provided below: 1st...
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...
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...
Lilliput, a one-product mail-order firm, buys its product for $70 per unit and sells it for...
Lilliput, a one-product mail-order firm, buys its product for $70 per unit and sells it for $132 per unit. The sales staff receives a 10% commission on the sale of each unit. Its December income statement follows.    LILLIPUT COMPANY Income Statement For The Month Ended December 31, 2011   Sales $ 1,320,000   Cost of goods sold 700,000      Gross profit 620,000   Expenses      Sales commissions (10%) 132,000      Advertising 204,000      Store rent 24,200        Administrative salaries 41,000      Depreciation 51,000      Other expenses 12,200   ...
The budgeted unit sales of Weller Company for the upcoming fiscal year are provided below: 1st...
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...
[The following information applies to the questions displayed below.] Phoenix Company’s 2017 master budget included the...
[The following information applies to the questions displayed below.] Phoenix Company’s 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales $ 3,150,000 Cost of goods sold Direct materials $ 975,000 Direct labor 225,000 Machinery repairs (variable cost) 60,000 Depreciation—Plant equipment (straight-line) 315,000 Utilities ($30,000 is variable) 210,000 Plant management salaries 210,000 1,995,000 Gross profit 1,155,000...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT