Reference no: EM132344519

Question

Carla Vista Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2020, the following data are available.

1. Sales: 20,000 units quarter 1; 22,700 units quarter 2.

2. Variable costs per dollar of sales: sales commissions 5%, delivery expense 2%, and advertising 3%.

3. Fixed costs per quarter: sales salaries $10,800, office salaries $6,360, depreciation $4,370, insurance $1,610, utilities $850, and repairs expense $620.

4. Unit selling price: $23.

Prepare a selling and administrative expense budget by quarters for the first 6 months of 2020. (List variable expenses before fixed expense.)

Quarter

1 2 Six Months

Budgeted Sales in Units

Variable Expenses

Advertising

Delivery Expense

Sales Commissions

Total Variable Fixed Expenses

Sales Salaries

Office Salaries

Depreciation

Insurance

Utilities

Repairs Expense

Total Fixed

Total Selling and Administrative Expenses