Question

Echo Amplifiers prepared the following sales budget for the first quarter of 2018:

	Jan.	Feb.	Mar.
Units	900	1,200	1,600
Sales price	$100	$100	$100
Budgeted sales	$90,000	$120,000	$160,000

It also has this additional information related to its expenses:

Direct material per unit	$1.50
Direct labor per unit	2
Variable manufacturing overhead per hour	0.50
Fixed manufacturing overhead per month	2,900
Sales commissions per unit	14
Sales salaries per month	4,900
Delivery expense per unit	0.50
Factory utilities per month	4,000
Administrative salaries per month	19,000
Marketing expenses per month	9,000
Insurance expense per month	10,000
Depreciation expense per month	9,000

Prepare a sales and administrative expense budget for each month in the quarter ending March 31, 2018. Enter all amounts as positive numbers.

Echo Amplifiers
Sales and Administrative Budget
For the Quarter Ending March 31, 2018
	January	February	March
Budgeted Sales in Units
Variable Expenses
?	$	$	$
?
Total Variable Expenses	$	$	$
Fixed Expenses
?	$	$	$
?
?
?
?
Total Fixed Expenses	$	$	$
Total Selling and Administrative Expenses	$	$	$

Answer 1

Answer-

ECHO AMPLIFIERS
SALES & ADMINISTRATIVE BUDGET
FOR THE QUARTER ENDING MARCH 31,2018
PARTICULARS	JANUARY	FEBRUARY	MARCH
	$	$	$
Budgeted sales in units	900	1200	1600
Variable expenses
Sales Commissions per unit	900 units*$14 per unit=$12600	1200 units*$14 per unit=$16800	1600 units*$14 per unit=$22400
Delivery expense per unit	900 units*$0.50 per unit=$450	1200 units*$0.50 per unit=$600	1600 units*$0.50 per unit=$800
Total variable expenses (a)	13050	17400	23200
Fixed Expenses
Sales salaries	4900	4900	4900
Administrative salaries	19000	19000	19000
Marketing expenses	9000	9000	9000
Insurance expense	10000	10000	10000
Depreciation expense	9000	9000	9000
Total fixed expenses (b)	51900	51900	51900
Total Selling & Administrative Expenses (c=a+b)	64950	69300	75100