Question

Exercise 22-12

Oriole Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2020, the following data are available.

1.		Sales: 20,500 units quarter 1; 22,200 units quarter 2.
2.		Variable costs per dollar of sales: sales commissions 5%, delivery expense 2%, and advertising 3%.
3.		Fixed costs per quarter: sales salaries $10,500, office salaries $6,250, depreciation $4,340, insurance $2,000, utilities $860, and repairs expense $690.
4.		Unit selling price: $24.

Prepare a selling and administrative expense budget by quarters for the first 6 months of 2020. (List variable expenses before fixed expense.)

ORIOLE COMPANY Selling and Administrative Expense Budget June 30, 2020For the Six Months Ending June 30, 2020For the Quarter Ending June 30, 2020
	Quarter
	1		2		Six Months
Total VariableTotal FixedTotal Selling and Administrative ExpensesUtilitiesVariable ExpensesSales CommissionsAdvertisingDepreciationBudgeted Sales in UnitsFixed ExpensesInsuranceDelivery ExpenseOffice SalariesRepairs ExpenseSales Salaries
DepreciationRepairs ExpenseFixed ExpensesVariable ExpensesTotal Selling and Administrative ExpensesAdvertisingBudgeted Sales in UnitsDelivery ExpenseInsuranceOffice SalariesTotal FixedTotal VariableUtilitiesSales CommissionsSales Salaries
Repairs Expense    Total Fixed    Advertising    Sales Commissions    Fixed Expenses    Insurance    Sales Salaries    Total Variable    Variable Expenses    Budgeted Sales in Units    Depreciation    Total Selling and Administrative Expenses    Utilities    Delivery Expense    Office Salaries	$		$		$
Budgeted Sales in Units    Office Salaries    Delivery Expense    Repairs Expense    Total Fixed    Sales Commissions    Advertising    Fixed Expenses    Variable Expenses    Depreciation    Insurance    Total Variable    Sales Salaries    Total Selling and Administrative Expenses    Utilities
Total Fixed    Delivery Expense    Total Selling and Administrative Expenses    Depreciation    Total Variable    Fixed Expenses    Insurance    Utilities    Office Salaries    Repairs Expense    Budgeted Sales in Units    Sales Commissions    Advertising    Sales Salaries    Variable Expenses
Budgeted Sales in Units    Sales Salaries    Delivery Expense    Fixed Expenses    Depreciation    Insurance    Advertising    Total Fixed    Sales Commissions    Office Salaries    Repairs Expense    Total Selling and Administrative Expenses    Total Variable    Utilities    Variable Expenses
Sales SalariesDelivery ExpenseInsuranceRepairs ExpenseVariable ExpensesSales CommissionsTotal FixedOffice SalariesFixed ExpensesUtilitiesAdvertisingTotal Selling and Administrative ExpensesBudgeted Sales in UnitsDepreciationTotal Variable
Advertising    Depreciation    Office Salaries    Total Fixed    Fixed Expenses    Insurance    Variable Expenses    Budgeted Sales in Units    Delivery Expense    Repairs Expense    Utilities    Sales Commissions    Sales Salaries    Total Selling and Administrative Expenses    Total Variable
Delivery Expense    Sales Salaries    Depreciation    Fixed Expenses    Sales Commissions    Utilities    Insurance    Total Fixed    Variable Expenses    Total Variable    Budgeted Sales in Units    Advertising    Office Salaries    Repairs Expense    Total Selling and Administrative Expenses
Utilities    Insurance    Fixed Expenses    Depreciation    Office Salaries    Total Selling and Administrative Expenses    Total Variable    Variable Expenses    Delivery Expense    Repairs Expense    Advertising    Budgeted Sales in Units    Sales Commissions    Sales Salaries    Total Fixed
Total Variable    Utilities    Total Fixed    Budgeted Sales in Units    Variable Expenses    Advertising    Sales Commissions    Delivery Expense    Depreciation    Fixed Expenses    Insurance    Office Salaries    Sales Salaries    Repairs Expense    Total Selling and Administrative Expenses
Sales Commissions    Total Variable    Depreciation    Sales Salaries    Total Fixed    Total Selling and Administrative Expenses    Budgeted Sales in Units    Insurance    Delivery Expense    Utilities    Office Salaries    Fixed Expenses    Repairs Expense    Variable Expenses    Advertising
Variable Expenses    Office Salaries    Utilities    Total Variable    Budgeted Sales in Units    Sales Commissions    Advertising    Sales Salaries    Fixed Expenses    Total Fixed    Delivery Expense    Insurance    Depreciation    Total Selling and Administrative Expenses    Repairs Expense
Repairs Expense    Delivery Expense    Depreciation    Total Fixed    Budgeted Sales in Units    Total Selling and Administrative Expenses    Insurance    Fixed Expenses    Office Salaries    Utilities    Sales Commissions    Sales Salaries    Total Variable    Variable Expenses    Advertising
Variable ExpensesUtilitiesAdvertisingSales SalariesBudgeted Sales in UnitsTotal FixedRepairs ExpenseDelivery ExpenseTotal Selling and Administrative ExpensesFixed ExpensesTotal VariableOffice SalariesDepreciationInsuranceSales Commissions	$		$		$

Answer 1