ELT Corporation, which makes only one product, Yester, has the following information available for the coming...

ELT Corporation, which makes only one product, Yester, has the following information available for the coming year. ELT expects sales to be 27,000 units at $32 per unit. The current inventory of Yester is 3,500 units. ELT wants an ending inventory of 4,200 units. Each unit of Yester takes two units of component K. Component K is estimated to cost $9 per unit. Current inventory of K is 3,900 units. ELT wants 5,800 units of K on hand at the end of the next year.
If ELT pays its sales staff commission of 5% of sales. How much will be recorded on the marketing budget for sales commissions for the next period?

A. $864,000

B. $86,400

C. $43,200

D. $27,000

Solutions

Expert Solution

Solution:

Given data,

ELT expects sales to be 27,000 units at $32 per unit.

The current inventory of Yester is 3,500 units.

ELT wants an ending inventory of 4,200 units.

Each unit of Yester takes two units of component K.

Component K is estimated to cost $9 per unit.

Current inventory of K is 3,900 units.

ELT wants 5,800 units of K on hand at the end of the next year.

From the given data we need to find the marketing budget for sales commissions for the next period.

Now we calculate the marketing budget for sales commissions for the next period:

The marketing budget for sales commissions for the next period :

Budgeted sales = No. of budgeted sales unit * sales price per unit

= 27,000 * $ 32

Budgeted sales = $ 864,000

Budgeted sales commission = Budgeted sales * 5 %

= $ 864,000 * 5%

Budgeted sales commission = $ 43,200

Therefore option (c). $ 43,200 is correct answer

Budgeted sales commission for the next period

$ 43,200

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Roberts Corporation makes one product and has provided the following information: a. Each unit of finished...

Roberts Corporation makes one product and has provided the following information: a. Each unit of finished goods requires 3 pounds of raw materials. The raw materials cost $5.00 per pound. b. The direct labor wage rate is $24.00 per hour. Each unit of finished goods requires 2.8 direct labor-hours. c. Manufacturing overhead is entirely variable and is $11.00 per direct labor-hour. d. The variable selling and administrative expense per unit sold is $3.80. The fixed selling and administrative expense...

Stefanovich Corporation makes one product. The company has provided the following information concerning its raw materials...

Stefanovich Corporation makes one product. The company has provided the following information concerning its raw materials needs: The ending raw materials inventory should equal 20% of the following month’s raw materials production needs. Each unit of finished goods requires 2 pounds of raw materials. The raw materials cost $3.00 per pound. The company will need 26,440 pounds of raw material to satisfy production needs in March. The raw materials inventory balance at the end of February should be closest to:...

TB Problem Qu. 6-273 Maher Corporation, which has only one product ... Maher Corporation, which has...

TB Problem Qu. 6-273 Maher Corporation, which has only one product ... Maher Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 197 Units in beginning inventory 0 Units produced 3,200 Units sold 2,800 Units in ending inventory 400 Variable costs per unit: Direct materials $ 53 Direct labor $ 58 Variable manufacturing overhead $ 13 Variable selling and administrative expense $ 12 Fixed costs: Fixed manufacturing overhead...

Nelter Corporation, which has only one product, has provided the following data concerning its most recent...

Nelter Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 120 Units in beginning inventory 320 Units produced 6,540 Units sold 6,260 Units in ending inventory 600 Variable costs per unit: Direct materials $ 41 Direct labor $ 23 Variable manufacturing overhead $ 2 Variable selling and administrative expense $ 12 Fixed costs: Fixed manufacturing overhead $ 156,960 Fixed selling and administrative expense $ 93,900 The company produces...

Farris Corporation, which has only one product, has provided the following data concerning its most recent...

Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 112 Units in beginning inventory 0 Units produced 8,950 Units sold 8,550 Units in ending inventory 400 Variable costs per unit: Direct materials $ 18 Direct labor $ 60 Variable manufacturing overhead $ 6 Variable selling and administrative expense $ 10 Fixed costs: Fixed manufacturing overhead $ 134,250 Fixed selling and administrative expense $ 8,800 What is the...

Farris Corporation, which has only one product, has provided the following data concerning its most recent...

Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 160 Units in beginning inventory 0 Units produced 9,550 Units sold 9,150 Units in ending inventory 400 Variable costs per unit: Direct materials $ 30 Direct labor $ 72 Variable manufacturing overhead $ 18 Variable selling and administrative expense $ 22 Fixed costs: Fixed manufacturing overhead $ 143,250 Fixed selling and administrative expense $ 10,000 What is the...

Maher Corporation, which has only one product, has provided the following data concerning its most recent...

Maher Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 186 Units in beginning inventory 0 Units produced 3,690 Units sold 3,120 Units in ending inventory 570 Variable costs per unit: Direct materials $ 56 Direct labor $ 52 Variable manufacturing overhead $ 8 Variable selling and administrative expense $ 18 Fixed costs: Fixed manufacturing overhead $ 121,770 Fixed selling and administrative $ 9,360 Required: a. What is...

Nelter Corporation, which has only one product, has provided the following data concerning its most recent...

Nelter Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 128 Units in beginning inventory 345 Units produced 6,880 Units sold 6,830 Units in ending inventory 395 Variable costs per unit: Direct materials $ 42 Direct labor $ 23 Variable manufacturing overhead $ 3 Variable selling and administrative expense $ 19 Fixed costs: Fixed manufacturing overhead $ 165,120 Fixed selling and administrative expense $ 95,620 The company produces...

Pacheo Corporation, which has only one product, has provided the following data concerning its most recent...

Pacheo Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 108 Units in beginning inventory 955 Units produced 2,390 Units sold 3,000 Units in ending inventory 345 Variable costs per unit: Direct materials $ 25 Direct labor $ 20 Variable manufacturing overhead $ 1 Variable selling and administrative expense $ 14 Fixed costs: Fixed manufacturing overhead $ 64,530 Fixed selling and administrative expense $ 9,000 The company produces...

Pacheo Corporation, which has only one product, has provided the following data concerning its most recent...

Pacheo Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 113 Units in beginning inventory 860 Units produced 2,290 Units sold 2,770 Units in ending inventory 380 Variable costs per unit: Direct materials $ 25 Direct labor $ 18 Variable manufacturing overhead $ 2 Variable selling and administrative expense $ 21 Fixed costs: Fixed manufacturing overhead $ 66,410 Fixed selling and administrative expense $ 5,540 The company produces...

Subjects