ABC Company's budgeted sales for June, July, and August are 15,400, 19,400, and 17,400 units, respectively. The
Question:
ABC Company's budgeted sales for June, July, and August are 15,400, 19,400, and 17,400 units, respectively. The following cost behavior patterns are budgeted for ABC Company's operating expenses each month:
Fixed costs: salaries, $3,700; rent, $6,700; depreciation, $4,100; advertising, $4,900
Mixed Costs: Utilities, $4,700 + $0.40 per unit
Variable costs per unit sold: sales commissions, $3.70; marketing promotions, $2.70; supplies, $0.70; bad debt expense, $0.40
Required:
Prepare the budget of operating expenses of the company ABC for the months of June, July and August.
ABC Company's budgeted sales for June, July, and August are 15,400, 19,400, and 17,400 units, respectively. The following cost behavior patterns are budgeted for ABC Company's operating expenses each month:
Fixed costs: salaries, $3,700; rent, $6,700; depreciation, $4,100; advertising, $4,900
Mixed Costs: Utilities, $4,700 + $0.40 per unit
Variable costs per unit sold: sales commissions, $3.70; marketing promotions, $2.70; supplies, $0.70; bad debt expense, $0.40
Required:
Prepare the budget of operating expenses of the company ABC for the months of June, July and August.
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Accounting What the Numbers Mean
ISBN: 978-0078025297
10th edition
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele