Question

Exercise 8-6 Selling and Administrative Expense Budget

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	15,000	16,000	14,000	13,000

The company’s variable selling and administrative expense per unit is $2.50. Fixed selling and administrative expenses include advertising expenses of $8,000 per quarter, executive salaries of $35,000 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 $8,000 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.)

Weller Company Selling and Administrative Expense Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Budgeted unit salesselected answer correct 15,000selected answer correct 16,000selected answer correct 14,000selected answer correct 13,000selected answer correct 58,000selected answer correct Variable selling and administrative expense per unit $2.50selected answer correct $2.50selected answer correct $2.50selected answer correct $2.50selected answer correct $2.50selected answer correct Variable selling and administrative expense $37,500selected answer correct $40,000selected answer correct $35,000selected answer correct $32,500selected answer correct $145,000selected answer correct Fixed selling and administrative expenses: Advertisingselected answer correct 8,000selected answer correct 8,000selected answer correct 8,000selected answer correct 8,000selected answer correct 32,000selected answer correct Executive salariesselected answer correct 35,000selected answer correct 35,000selected answer correct 35,000selected answer correct 35,000selected answer correct 140,000selected answer correct Depreciationselected answer correct 20,000selected answer correct 20,000selected answer correct 20,000selected answer correct 20,000selected answer correct 80,000selected answer correct Insuranceselected answer correct 5,000selected answer correct 0selected answer correct 0selected answer correct Property taxesselected answer correct 0selected answer correct 8,000selected answer correct 0selected answer correct 0selected answer correct 8,000selected answer correct Total fixed selling and administrative expenses 68,000selected answer correct 71,000selected answer correct 63,000selected answer correct Total selling and administrative expenses 105,500selected answer correct 111,000selected answer correct 95,500selected answer correct Less: Depreciationselected answer correct Cash disbursements for selling and administrative expenses

Answer 1