Question

Flexible budget for selling and administrative expenses for a service company Social Media Inc. uses flexible...

Flexible budget for selling and administrative expenses for a service company Social Media Inc. uses flexible budgets that are based on the following data:

Sales commissions ............................................................15% of sales

Advertising expense..........................................................20% of sales

Miscellaneous administrative expenses...........................$7,000 per month plus 10% of sales

Office salaries expense .....................................................$35,000 per month

Customer support expenses.............................................$11,000 per month plus 18% sales

Research and development expense................................$35,000 per month

Prepare a flexible selling and administrative expenses budget for June 2016 for sales volume $400,000, $500,000 and $600,000.

Homework Answers

Answer #1

Solution

Flexible Selling and Administrative Expenses Budget
Total sales $ 400,000 $ 500,000 $ 600,000
Variable cost:
Sales commission $ 60,000 $ 75,000 $ 90,000
Advertising expenses $ 80,000 $ 100,000 $ 120,000
Miscellaneous administrative expense $ 40,000 $ 50,000 $ 60,000
Customer support expenses $ 72,000 $ 90,000 $ 108,000
Total variable cost $ 252,000 $ 315,000 $ 378,000
Fixed cost:
Miscellaneous administrative expense $ 7,000 $ 7,000 $ 7,000
Office salaries expenses $ 35,000 $ 35,000 $ 35,000
Customer support expenses $ 11,000 $ 11,000 $ 11,000
Research and development expense $ 35,000 $ 35,000 $ 35,000
Total fixed cost $ 88,000 $ 88,000 $ 88,000
Total selling and administrative expenses $ 340,000 $ 403,000 $ 466,000
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Flexible Budget for Selling and Administrative Expenses for a Service Company Digital Solutions Inc. uses flexible...
Flexible Budget for Selling and Administrative Expenses for a Service Company Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales commissions 14% of sales Advertising expense 20% of sales Miscellaneous administrative expense $8,000 per month plus 12% of sales Office salaries expense $29,000 per month Customer support expenses $13,000 per month plus 20% of sales Research and development expense $30,000 per month Prepare a flexible selling and administrative expenses budget for October for sales volumes...
Flexible Budget for Selling and Administrative Expenses for a Service Company Cloud Productivity Inc. uses flexible...
Flexible Budget for Selling and Administrative Expenses for a Service Company Cloud Productivity Inc. uses flexible budgets that are based on the following data: Sales commissions 15% of sales Advertising expense 20% of sales Miscellaneous administrative expense $7,500 per month plus 12% of sales Office salaries expense $30,000 per month Customer support expenses $14,000 per month plus 20% of sales Research and development expense $31,000 per month Prepare a flexible selling and administrative expenses budget for March for sales volumes...
Flexible Budget for Selling and Administrative Expenses for a Service Company Cloud Productivity Inc. uses flexible...
Flexible Budget for Selling and Administrative Expenses for a Service Company Cloud Productivity Inc. uses flexible budgets that are based on the following data: Sales commissions 14% of sales Advertising expense 18% of sales Miscellaneous administrative expense $6,500 per month plus 12% of sales Office salaries expense $30,000 per month Customer support expenses $12,000 per month plus 20% of sales Research and development expense $32,000 per month Prepare a flexible selling and administrative expenses budget for March for sales volumes...
Flexible Budget for Selling and Administrative Expenses for a Service Company Cloud Productivity Inc. uses flexible...
Flexible Budget for Selling and Administrative Expenses for a Service Company Cloud Productivity Inc. uses flexible budgets that are based on the following data: Sales commissions 15% of sales Advertising expense 18% of sales Miscellaneous administrative expense $6,000 per month plus 12% of sales Office salaries expense $30,000 per month Customer support expenses $13,000 per month plus 20% of sales Research and development expense $32,000 per month Prepare a flexible selling and administrative expenses budget for March for sales volumes...
Flexible Budget for Selling and Administrative Expenses for a Service Company Cloud Productivity Inc. uses flexible...
Flexible Budget for Selling and Administrative Expenses for a Service Company Cloud Productivity Inc. uses flexible budgets that are based on the following data: Sales commissions 15% of sales Advertising expense 18% of sales Miscellaneous administrative expense $6,000 per month plus 12% of sales Office salaries expense $29,000 per month Customer support expenses $12,000 per month plus 20% of sales Research and development expense $32,000 per month Prepare a flexible selling and administrative expenses budget for March for sales volumes...
Flexible Budget for Selling and Administrative Expenses for a Service Company Cloud Productivity Inc. uses flexible...
Flexible Budget for Selling and Administrative Expenses for a Service Company Cloud Productivity Inc. uses flexible budgets that are based on the following data: Sales commissions 14% of sales Advertising expense 20% of sales Miscellaneous administrative expense $5,000 per month plus 12% of sales Office salaries expense $29,000 per month Customer support expenses $13,000 per month plus 20% of sales Research and development expense $32,000 per month Prepare a flexible selling and administrative expenses budget for March for sales volumes...
Flexible Budget for Selling and Administrative Expenses for a Service Company Cloud Productivity Inc. uses flexible...
Flexible Budget for Selling and Administrative Expenses for a Service Company Cloud Productivity Inc. uses flexible budgets that are based on the following data: Sales commissions 14% of sales Advertising expense 20% of sales Miscellaneous administrative expense $7,500 per month plus 12% of sales Office salaries expense $30,000 per month Customer support expenses $14,000 per month plus 20% of sales Research and development expense $30,000 per month Prepare a flexible selling and administrative expenses budget for March for sales volumes...
Flexible budget for selling and administrative expenses for a service company Digital Solutions Inc. uses flexible...
Flexible budget for selling and administrative expenses for a service company Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales commissions 8% of sales Advertising expense 13% of sales Miscellaneous administrative expense $8,000 per month plus 4% of sales Office salaries expense $45,000 per month Customer support expenses $15,000 per month plus 31% of sales Research and development expense $79,000 per month Prepare a flexible selling and administrative expenses budget for October for sales volumes...
Flexible Budget for Selling and Administrative Expenses for a Service Company Morningside Technologies Inc. uses flexible...
Flexible Budget for Selling and Administrative Expenses for a Service Company Morningside Technologies Inc. uses flexible budgets that are based on the following data: Sales commissions 6% of sales Advertising expense 24% of sales Miscellaneous administrative expense $1,300 per month plus 3% of sales Office salaries expense $12,000 per month Customer support expenses $1,800 plus 4% of sales Research and development expense 4,000 per month Prepare a flexible selling and administrative expenses budget for April for sales volumes of $80,000,...
Flexible Budget for Selling and Administrative Expenses for a Service Company Morningside Technologies Inc. uses flexible...
Flexible Budget for Selling and Administrative Expenses for a Service Company Morningside Technologies Inc. uses flexible budgets that are based on the following data: Sales commissions 8% of sales Advertising expense 20% of sales Miscellaneous administrative expense $1,700 per month plus 1% of sales Office salaries expense $16,000 per month Customer support expenses $2,350 plus 2% of sales Research and development expense 3,150 per month Prepare a flexible selling and administrative expenses budget for April for sales volumes of $105,000,...