Question

6. value: 1.50 points The budgeted unit sales of Weller Company for the upcoming fiscal year are provided below: 1st Quarter 33,000 2nd Quarter 35,000 3rd Quarter 26,000 4th Quarter 31,000 Budgeted unit sales The company's variable selling and administrative expense per unit is $3.20. Fixed selling and administrative expenses include advertising expenses of $10,000 per quarter, executive salaries of $53,000 per quarter, and depreciation of $32,000 per quarter. In addition, the company will make insurance payments of $5,000 in the first quarter and $5,000 in the third quarter. Finally, property taxes of $9,200 will be paid in the second quarter. Required: Prepare the company's selling and administrative expense budget for the upcoming fiscal year. (Round "Variable cost" answers to 2 decimal places.) Weller Company Selling and Administrative Expense Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Fixed selling and administrative expenses: Total fixed selling and administrative expenses Total selling and administrative expenses Cash disbursements for selling and administrative expenses

Answer 1

Solution

WELLER COMPANY
SELLING AND ADMINISTRATIVE EXPENSE BUDGET
	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Total
Budgeted Unit sales	33000	35000	26000	31000	125000
variable Selling and Administrative expenses	$      105,600.00	$      112,000.00	$        83,200.00	$       99,200.00	$     400,000.00
Fixed Selling and Administrative expenses
Advertising Expense	$         10,000.00	$        10,000.00	$        10,000.00	$       10,000.00	$        40,000.00
Executive Salaries	$         53,000.00	$        53,000.00	$        53,000.00	$       53,000.00	$     212,000.00
Depreciation	$         32,000.00	$        32,000.00	$        32,000.00	$       32,000.00	$     128,000.00
Insurance	$           5,000.00		$          5,000.00		$        10,000.00
Property taxes		$           9,200.00			$          9,200.00
Total Fixed Selling and Administrative expenses	$      100,000.00	$      104,200.00	$     100,000.00	$       95,000.00	$     399,200.00
Total Selling and Administrative expenses	$      205,600.00	$      216,200.00	$     183,200.00	$    194,200.00	$     799,200.00
Less: Non cash expense (depreciation)	$         32,000.00	$        32,000.00	$        32,000.00	$       32,000.00	$     128,000.00
Cash Disbursement for selling and administrative expenses	$      173,600.00	$      184,200.00	$     151,200.00	$    162,200.00	$     671,200.00