Question

Brief Exercise 9-7 Elbert Company classifies its selling and administrative expense budget into variable and fixed components. Variable expenses are expected to be $26,770 in the first quarter, and $5,240 increments are expected in the remaining quarters of 2020. Fixed expenses are expected to be $41,680 in each quarter. Prepare the selling and administrative expense budget by quarters and in total for 2020. ELBERT COMPANY Selling and Administrative Expense Budget Quarter 1 2 3 4 Year $ $ $ $ $ $ $ $ $ $

Answer 1

ELBERT COMPANY
Selling and administrative budget
For the year ended 2020
	Quarter
	1	2	3	4	Year
Variable costs	$ 26,770	$26,770+$5,240 = $32,010	$32,010+$5,240 = $37,250	$37,250+$5,240 = $42,490	$ 138,520
Fixed costs	$ 41,680	$                                  41,680	$                                  41,680	$                                  41,680	$ 166,720
Total selling and administrative costs	$ 68,450	$                                  73,690	$                                  78,930	$                                  84,170	$ 305,240

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