Question

Kirkland Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2020, the following data are available.

1.		Sales: 20,400 units quarter 1; 22,700 units quarter 2.
2.		Variable costs per dollar of sales: sales commissions 5%, delivery expense 2%, and advertising 3%.
3.		Fixed costs per quarter: sales salaries $10,000, office salaries $6,360, depreciation $4,650, insurance $1,900, utilities $830, and repairs expense $640.
4.		Unit selling price: $22.

Prepare a selling and administrative expense budget by quarters for the first 6 months of 2020. (List variable expenses before fixed expense.)

KIRKLAND COMPANY Selling and Administrative Expense Budget                                                           For the Six Months Ending June 30, 2020June 30, 2020For the Quarter Ending June 30, 2020
	Quarter
	1		2		Six Months
InsuranceTotal FixedTotal VariableAdvertisingTotal Selling and Administrative ExpensesRepairs ExpenseFixed ExpensesSales CommissionsUtilitiesBudgeted Sales in UnitsSales SalariesDelivery ExpenseVariable ExpensesOffice SalariesDepreciation
Total Selling and Administrative ExpensesAdvertisingDelivery ExpenseFixed ExpensesDepreciationVariable ExpensesRepairs ExpenseInsuranceOffice SalariesSales CommissionsTotal VariableUtilitiesSales SalariesBudgeted Sales in UnitsTotal Fixed
Budgeted Sales in UnitsSales CommissionsTotal Selling and Administrative ExpensesInsuranceUtilitiesTotal VariableVariable ExpensesDepreciationDelivery ExpenseFixed ExpensesOffice SalariesSales SalariesTotal FixedAdvertisingRepairs Expense	$		$		$
Budgeted Sales in UnitsDepreciationSales CommissionsAdvertisingTotal Selling and Administrative ExpensesFixed ExpensesOffice SalariesRepairs ExpenseInsuranceDelivery ExpenseSales SalariesUtilitiesTotal VariableTotal FixedVariable Expenses
Budgeted Sales in UnitsTotal Selling and Administrative ExpensesOffice SalariesDepreciationTotal FixedUtilitiesFixed ExpensesAdvertisingDelivery ExpenseRepairs ExpenseSales SalariesInsuranceTotal VariableSales CommissionsVariable Expenses
Total FixedOffice SalariesTotal Selling and Administrative ExpensesAdvertisingInsuranceFixed ExpensesSales CommissionsVariable ExpensesRepairs ExpenseSales SalariesBudgeted Sales in UnitsUtilitiesTotal VariableDelivery ExpenseDepreciation
Sales SalariesDepreciationVariable ExpensesTotal VariableFixed ExpensesRepairs ExpenseUtilitiesTotal FixedAdvertisingInsuranceBudgeted Sales in UnitsDelivery ExpenseSales CommissionsOffice SalariesTotal Selling and Administrative Expenses
AdvertisingUtilitiesVariable ExpensesInsuranceDelivery ExpenseTotal FixedSales CommissionsBudgeted Sales in UnitsDepreciationTotal Selling and Administrative ExpensesFixed ExpensesRepairs ExpenseTotal VariableOffice SalariesSales Salaries
Office SalariesTotal FixedSales CommissionsRepairs ExpenseUtilitiesInsuranceAdvertisingTotal VariableSales SalariesDelivery ExpenseVariable ExpensesTotal Selling and Administrative ExpensesFixed ExpensesBudgeted Sales in UnitsDepreciation
Fixed ExpensesTotal VariableOffice SalariesTotal Selling and Administrative ExpensesSales CommissionsDelivery ExpenseSales SalariesUtilitiesDepreciationRepairs ExpenseVariable ExpensesInsuranceAdvertisingTotal FixedBudgeted Sales in Units
Office SalariesTotal VariableDelivery ExpenseVariable ExpensesBudgeted Sales in UnitsInsuranceSales SalariesFixed ExpensesUtilitiesSales CommissionsAdvertisingRepairs ExpenseTotal Selling and Administrative ExpensesDepreciationTotal Fixed
Fixed ExpensesBudgeted Sales in UnitsDelivery ExpenseSales CommissionsAdvertisingOffice SalariesUtilitiesSales SalariesTotal VariableTotal FixedDepreciationRepairs ExpenseTotal Selling and Administrative ExpensesInsuranceVariable Expenses
AdvertisingOffice SalariesBudgeted Sales in UnitsDepreciationTotal FixedFixed ExpensesRepairs ExpenseDelivery ExpenseInsuranceSales SalariesUtilitiesVariable ExpensesTotal Selling and Administrative ExpensesSales CommissionsTotal Variable
Budgeted Sales in UnitsDelivery ExpenseTotal VariableFixed ExpensesAdvertisingSales SalariesTotal FixedVariable ExpensesTotal Selling and Administrative ExpensesRepairs ExpenseSales CommissionsDepreciationUtilitiesOffice SalariesInsurance
Total VariableInsuranceVariable ExpensesTotal FixedTotal Selling and Administrative ExpensesOffice SalariesUtilitiesRepairs ExpenseFixed ExpensesDepreciationSales CommissionsSales SalariesAdvertisingBudgeted Sales in UnitsDelivery Expense	$		$		$

Answer 1