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Question - Sheridan Company makes and sells widgets. The company is in the process of preparing its selling and administrative expense budget for the month. The following budget data are available:
Item
Variable Cost Per Unit Sold
Monthly Fixed Cost
Sales commissions
$1
$10000
Shipping
$3
Advertising
$4
Executive salaries
$120000
Depreciation on office equipment
$4000
Other
$2
$6000
Expenses are paid in the month incurred. If the company has budgeted to sell S4000 widgets in October, how much is the total budgeted selling and administrative expenses for October?
$540000
$670000
$680000
$140000
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