Question

Exercise 8-6 Selling and Administrative Expense Budget [LO8-7]

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	21,000	28,000	19,000	19,000

The company’s variable selling and administrative expense per unit is $2.00. Fixed selling and administrative expenses include advertising expenses of $14,000 per quarter, executive salaries of $41,000 per quarter, and depreciation of $20,000 per quarter. In addition, the company will make insurance payments of $5,000 in the first quarter and $5,000 in the third quarter. Finally, property taxes of $8,400 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

Answer-

Weller Company
Selling & Administrative Expense Budget
Particluars	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Total
Budgeted unit sales (a)	21000	28000	19000	19000	87000
Variable selling and administrative expense per unit (b)	$2.00	$2.00	$2.00	$2.00	$2.00
Total Variable selling and administrative expense per (c=a*b)	42000	56000	38000	38000	174000
Fixed selling and administrative expense
Advertising expense $	14000	14000	14000	14000	56000
Executive Salarie $	41000	41000	41000	41000	164000
Depreciation $	2000	2000	2000	2000	8000
Insurance payments $	5000		5000		10000
Property taxes $		8400			8400
Total Fixed selling and administrative expense (d) $	62000	65400	62000	57000	246400
Total selling and administrative expense (e=c+d) $	104000	121400	100000	95000	420400