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Problem - Lockwood Company combines its operating expenses for budget purposes in a selling and administrative expenses budget. For the first six months of 2020, the following data are available:
1. Sales: 20,500 units in quarter 1; 21,500 units in quarter 2
2. Variable costs per dollar of sales: sales commissions 5%; delivery expense 2%; and advertising 4%
3. Fixed costs per quarter: sales salaries $9,200; office salaries $8,600; depreciation $4,400; insurance $1,400; utilities $700; and repairs expense $600
4. Unit selling price: $20
Required - Prepare a selling and administrative expenses budget by quarters for the first six months of 2020.
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