Question

CALCULATOR PRINTER VERSION BACK NEXT Kirkland Company combines its operating expenses for budget purposes are available and administrative expense budget. For the first 6 months of 2020, the following data 1. 2. 3. 4. Sales: 20,800 units quarter 1: 22,000 units quarter 2. Variable costs per dollar of sales: sales commissions 5%, delivery expense 2%, and advertising 3% Fixed costs per quarter: sales salaries $10,500, office salaries $6,270, depreciation $4,770, insurance $1,720, utilities $820, and repairs expense $670. Unit selling price: $21. 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 the Six Months Ending June 30, 2020 Quarter Budgeted Sales in Units Variable Expenses Sales Commissions Delivery Expense Advertising Total Variable Fixed Expenses Sales Salaries Questions/Exercise Office Salaries Chapter 9 HW

Answer 1

Selling and administrative expense budget

For the six month ended June 30,2020

	Quarter 1	Quarter 2	Six months
Budgeted unit sales	20800	22000
Variable expense
Sales commission	21840	23100	44940
Delivery expense	8736	9240	17976
Advertising	13104	13860	26964
Total Variable expense	43680	46200	89880
Fixed expense
Sales salaries	10500	10500	21000
Office salaries	6270	6270	12540
Depreciation	4770	4770	9540
Insurance	1720	1720	3440
Utilities	820	820	1640
Repairs expense	670	670	1340
Total Fixed expense	24750	24750	49500
Total Selling and administrative expense	68430	70950	139380