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: 20,500 units quarter 1; 22,600 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 $10,100, office salaries $6,230, depreciation $4,730, insurance $1,680, utilities $840, and repairs expense $690. 4. Unit selling price: $25. 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 Quarter 1 2 Six Months $ $ $ $ $ $

Answer 1

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, 2020
	Quarter
	1		2		Six Months
Sales revenue	512500		565000		1077500
Variable Cost
Sales commission	25625		28250		53875
Delivery	10250		11300		21550
Advertising	15375		16950		32325
Total Variable cost	51250		56500		107750
Fixed cost
Sales salaries	10100		10100		20200
Office salaries	6230		6230		12460
Depreciation	4730		4730		9460
Insurance	1680		1680		3360
Utilities	840		840		1680
Repairs expense	690		690		1380
Total Fixed cost	24270		24270		48540
Total	75520		80770		156290