Question

Elbert Company classifies its selling and administrative expense budget into variable and fixed components. Variable expenses are expected to be $25,830 in the first quarter, and $5,100 increments are expected in the remaining quarters of 2017. Fixed expenses are expected to be $42,100 in each quarter.

Prepare the selling and administrative expense budget by quarters and in total for 2017.

Quarter
	1		2		3		4		Year
Variable expenses	$		$		$		$		$
Fixed expenses
Total selling and administrative expenses	$		$		$		$		$

Answer 1

Solution

ELBERT COMPANY
Selling and Administrative Expense Budget
For the Year Ending December 31, 2017
	Quarter
	1	2	3	4	Year
Variable Expenses	$         25,830.00	$        30,930.00	$        36,030.00	$       41,130.00	$     133,920.00
Fixed Expenses	$         42,100.00	$        42,100.00	$        42,100.00	$       42,100.00	$     168,400.00
Total Selling and Administrative Expenses	$         67,930.00	$        73,030.00	$        78,130.00	$       83,230.00	$     302,320.00