Question

Question 7 0.6 points Save Warshaw Company budgets payroll at $3800 per month plus a percentage of monthly sales. The June operating expenses budget includes total payroll of $13,300 with budgeted sales of $190,000. Sales for July are budgeted at $120,000 while purchases of inventory for July are budgeted at $910,000. Depreciation and insurance for July are estimated at $500 and $600, respectively. Office and administrative expenses related to purchasing inventory are budgeted at 10% of purchases for the month. The purchase of $2800 in equipment and $1200 in furniture is expected in July. If the percentage of monthly sales used in budgeting payroll increases 15%, what would the total payroll budgeted for July be? $6900 O $10,700 O $6000 0 $9800

Answer 1

ANSWER:

Calculate july Payroll :

June payroll = 13300 and budgeted sales = 190000

So june fixed payroll = 3800

Variable payroll = (13300 -3800)/190000= 5%

July budgeted payroll = (120000*5%+3800) = 9800

so answer is d) $9800

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