Question

Weller Company's budgeted unit sales for the upcoming fiscal year are provided below:

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
Budgeted unit sales	16,000	18,000	15,000	14,000

The company’s variable selling and administrative expense per unit is $1.50. Fixed selling and administrative expenses include advertising expenses of $9,000 per quarter, executive salaries of $35,000 per quarter, and depreciation of $15,000 per quarter. In addition, the company will make insurance payments of $4,000 in the first quarter and $4,000 in the third quarter. Finally, property taxes of $6,000 will be paid in the second quarter.

Required:

Prepare the company’s selling and administrative expense budget for the upcoming fiscal year. (Round "Per Unit" answers to 2 decimal places.)

Answer 1

			Weller Company
		Selling and Administrative Expense Budget
					1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	year
Budgeted unit sales					16,000	18,000	15,000	14,000	63,000
Variable selling & adm expense per unit					1.5	1.5	1.5	1.5	1.5
Variable expense					24000	27000	22500	21000	94500
fixed selling & adm expenses:
Advertising					9,000	9,000	9,000	9,000	36,000
Executive salaries					35,000	35,000	35,000	35,000	140,000
Insurance					4,000		4,000		8,000
Property taxes						6,000			6000
Depreciation					15,000	15,000	15,000	15,000	15,000
total fixed expenses					63,000	65,000	63,000	59,000	205,000
Total selling & administrative expenses					87,000	92,000	85,500	80,000	299,500
Less Depreciation					15,000	15,000	15,000	15,000	60,000
cash disbursement for selling & adm expense					72,000	77,000	70,500	65,000	239,500