Lockwood Company combines its operating expenses for budget purposes in a selling and administrative expenses budget. For the first six months of 2016, the following data are available:
1. Sales: 20,000 units in quarter 1; 22,000 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 $10,000; office salaries $8,000; depreciation $4,200; insurance $1,500; utilities $800; and repairs expense $500
4. Unit selling price: $20
Instructions
Prepare a selling and administrative expenses budget by quarters for the first six months of 2016.