Question

The budgeted unit sales of Weller Company for the upcoming fiscal year are provided below:

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
Budgeted unit sales	24,000	25,000	21,000	22,000

The company’s variable selling and administrative expense per unit is $2.30. Fixed selling and administrative expenses include advertising expenses of $9,000 per quarter, executive salaries of $44,000 per quarter, and depreciation of $23,000 per quarter. In addition, the company will make insurance payments of $4,000 in the first quarter and $4,000 in the third quarter. Finally, property taxes of $8,600 will be paid in the second quarter.

  

Required:

Prepare the company’s selling and administrative expense budget for the upcoming fiscal year. (Round "Variable cost" answers to 2 decimal places.)

Answer 1

Prepare the company’s selling and administrative expense budget for the upcoming fiscal year.

	First quarter	second quarter	third quarter	Fourth quarter	Year
Unit sales	24000	25000	21000	22000	92000
Variable selling and administrative expense per unit	2.30	2.30	2.30	2.30	2.30
Variable Selling and administrative expense	55200	57500	48300	50600	211600
Fixed selling and administrative expenses
Advertising expenses	9000	9000	9000	9000	36000
Executive salaries	44000	44000	44000	44000	176000
Depreciation	23000	23000	23000	23000	92000
Insurance payment	4000		4000		8000
Property taxes		8600
Total fixed selling and administrative expense	80000	84600	80000	76000	320600
Total Selling and administrative expense	135200	142100	128300	126600	532200
Less; Depreciation	(23000)	(23000)	(23000)	(23000)	(92000)
Cash disbursement on selling and administrative expense	112200	119100	105300	103600	440200