Flying Eagles Ltd manufactures furniture items. For their popular product item, sofa, the sales budget for the next quarter from April to June 2023 has been completed as follows:

April May June Units 80 86 84 Selling price $1,200 $1,200 $1,200 Sales revenues $96,000 $103,200 $100,800

Additional information related to its costs and expenses are available below:

Direct material per unit $ 55

Direct labour per hour 20

Variable manufacturing overhead per hour 3.50

Fixed manufacturing overhead per month 3,000

Sales commissions per unit 20

Sales salaries per month 5,000

Delivery expenses per unit 0.50

Utilities (sales showroom) per month 4,000

Administrative salaries per month 20,000

Marketing expenses per month 8,000

Insurance expense per month 11,000

Depreciation expense per month 9,000

Required

: (a) Prepare a Sales and Administrative Expense Budget for the three months (in columnar form) in the quarter ending 30 June 2023, separating variable and fixed expenses. (12 marks)

(b) Briefly discuss any FOUR purposes of budgeting in organisations.

Answer rating: 100% (QA)

Answer a Sales and Administrative Expense Budget for April to June 2023 Expense Category April May J... View the full answer