Question

Flexible Budget for Selling and Administrative Expenses for a Service Company Morningside Technologies Inc. uses flexible budgets that are based on the following data: Sales commissions 6% of sales Advertising expense 18% of sales Miscellaneous administrative expense $1,700 per month plus 2% of sales Office salaries expense $16,000 per month Customer support expenses $2,350 plus 3% of sales Research and development expense 4,200 per month Prepare a flexible selling and administrative expenses budget for April for sales volumes of $105,000, $130,000, and $160,000. Enter all amounts as positive numbers. Morningside Technologies Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending April 30 Total sales $105,000 $130,000 $160,000 Variable cost: Sales commissions $ $ $ Advertising expense Miscellaneous administrative expense Customer support expenses Total variable cost $ $ $ Fixed cost: Miscellaneous administrative expense $ $ $ Office salaries expense Customer support expenses Research and development expense Total fixed cost $ $ $ Total selling and administrative expenses $ $ $

Answer 1

Flexible budget selling and administrative budget

Total Sales	105000	130000	160000
Variable cost
Sales commission	6300	7800	9600
Advertising expense	18900	23400	28800
Miscellaneous administrative expense	2100	2600	3200
Customer support expenses	3150	3900	4800
Total Variable cost	30450	37700	46400
Fixed cost
Miscellaneous administrative expense	1700	1700	1700
Office salaries expense	16000	16000	16000
Customer support expenses	2350	2350	2350
Research and development expense	4200	4200	4200
Total fixed cost	24250	24250	24250
Total selling and administrative expenses	54700	61950	70650