Concord Corporation makes and sells widgets. The company is in the process of preparing its selling and administrative expense budget for the month. The following budget data are available: Item Variable Cost Per Unit Sold Monthly Fixed Cost Sales commissions $1 $10000 Shipping $3 Advertising $4 Executive salaries $120000 Depreciation on office equipment $4000 Other $2 $6000 Expenses are paid in the month incurred. If the company has budgeted to sell 66000 widgets in October, how much is the total budgeted selling and administrative expenses for October?

Question

Business

Isaiah Pugh

27 March, 21:36

Concord Corporation makes and sells widgets. The company is in the process of preparing its selling and administrative expense budget for the month. The following budget data are available: Item Variable Cost Per Unit Sold Monthly Fixed Cost Sales commissions $1 $10000 Shipping $3 Advertising $4 Executive salaries $120000 Depreciation on office equipment $4000 Other $2 $6000 Expenses are paid in the month incurred. If the company has budgeted to sell 66000 widgets in October, how much is the total budgeted selling and administrative expenses for October?

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Answers (1)

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Jaliyah Kennedy · Answer 1

Total selling and administrative = $890,000

Explanation:

Giving the following information:

The following budget data are available:

Variable - fixed

Sales commissions: $1 $10000

Shipping $3

Advertising $4

Executive salaries $120000

Depreciation on office equipment $4000

Other $2 $6000

Expenses are paid in the month incurred. The company has budgeted to sell 66000 widgets in October.

Total selling and administrative = (1*66,000 + 100,000) + 3*66,000 + 4*66,000 + 120,000 + 4,000 + (2*66,000 + 6,000) = $890,000