The International Company makes and sells only one product, Product SW. The company is in the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The International Company makes and sells only one product, Product SW. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available: Variable Cost Monthly Fixed Per Unit Sold s0.70 $1.10 Cost Sales commissions. Shipping.. Advertising. $0.20 S14,000 S34,000 S11,000 $19,000 Executive salaries. Depreciation on office equipment. Other. $0.25 All expenses other than depreciation (no payment for Depreciation) are paid in cash in the month they are incurred. a) If the company has budgeted to sell 25,000 units of Product SW in July, then the total budgeted selling and administrative expenses for July will be: Answer. $134,250 Hint: Calculate Variable cost per unit = Answer = $2.25 Fixed cost = $78,000 Total budgeted selling and administrative expenses = Variable cost + Fixed cost Answer = $134,250 b) If the company has budgeted to sell 20,000 units of Product SW in October then the total budgeted variable selling and administrative expenses for October will be: Answer. $45,000 Hint: Variable cost per unit = = $2.25 Total budgeted variable selling and administrative expenses = Variable cost per unit x Units sold The International Company makes and sells only one product, Product SW. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available: Variable Cost Monthly Fixed Per Unit Sold s0.70 $1.10 Cost Sales commissions. Shipping.. Advertising. $0.20 S14,000 S34,000 S11,000 $19,000 Executive salaries. Depreciation on office equipment. Other. $0.25 All expenses other than depreciation (no payment for Depreciation) are paid in cash in the month they are incurred. a) If the company has budgeted to sell 25,000 units of Product SW in July, then the total budgeted selling and administrative expenses for July will be: Answer. $134,250 Hint: Calculate Variable cost per unit = Answer = $2.25 Fixed cost = $78,000 Total budgeted selling and administrative expenses = Variable cost + Fixed cost Answer = $134,250 b) If the company has budgeted to sell 20,000 units of Product SW in October then the total budgeted variable selling and administrative expenses for October will be: Answer. $45,000 Hint: Variable cost per unit = = $2.25 Total budgeted variable selling and administrative expenses = Variable cost per unit x Units sold
Expert Answer:
Related Book For
Posted Date:
Students also viewed these organizational behavior questions
-
The McKnight Company is in the process of preparing its manufacturing overhead budget for the upcoming year. Sales are projected to be 42,000 units. Information about the various manufacturing...
-
The Carlyle Company is in the process of preparing its manufacturing overhead budget for the upcoming year. Sales are projected to be 40,000 units. Information about the various manufacturing...
-
The Schulman Company is in the process of preparing its manufacturing overhead budget for the upcoming year. Sales are projected to be 44,000 units. Information about the various manufacturing...
-
Which of the following is most nearly the mass of the Earth? (The radius of the Earth is about 6.4 106 m) A. 6 x 1024 kg B. 6 x 107 kg C. 6 x 103 kg D. 6 x 1033 kg E. 6 x 1036 kg
-
The Zenith Credit Bureau telephones Dan and his family almost daily about payment of a $3,500 debt. The phone calls are causing stress for Dans family. Dan cannot afford to pay the debt at present,...
-
The zero-biased junction capacitance of a silicon pn junction is \(C_{j o}=0.4 \mathrm{pF}\). The doping concentrations are \(N_{a}=1.5 \times 10^{16} \mathrm{~cm}^{-3}\) and \(N_{d}=4 \times 10^{15}...
-
Find the area to the right of 40.256 under the chi-square distribution with 30 degrees of freedom.
-
Stone Corporation is a manufacturing company that makes small electric motors it sells for $45 per unit. The variable costs of production are $25 per motor, and annual fixed costs of production are...
-
The average density of Styrofoam is 1.00 [kg/m3 ]. A Styrofoam cooler is made with outside dimensions of 40.0 x 25.0 x 20.0 [cm] and the uniform thickness of the Styrofoam is 2.00[cm] (including the...
-
Fill in the blanks for the ABC analysis process map. Based on the process map, calculate the assigned indirect costs using the traditional method. Explain the pros and cons of this in comparison to...
-
Trident Solar Technologies (TST) is the wholly-owned Taiwanese subsidiary of United Renewable Energy (URE) Inc., a U.S. firm. Last year, TST had $2,000,000 of taxable income and paid 50% of the...
-
What role can cultural awareness play in overcoming challenges in cross - cultural teams?
-
The local utility company charges ABC Company at a mixed cost utility rate: an annual fee plus a variable cost for each kilowatt of power the company uses. Utility usage and costs are as follows:...
-
Exercise 2: [1 mark Write a java program that saves names entered by the user through the standard input to a file and. Show that your program saves the names to the file. Sample Input/Output: Please...
-
What are three key challenges you face as a leader in business today and how do you currently maneuver to lessen the impact or to negate the impact of these challenges? What one thing must a leader...
-
1. Mr. Van Dam is hitting a ball from the fairway toward the green. He chooses a 5-iron and strikes the ball with a velocity of 48.5 m/s at an angle of 35.0 above the horizontal. Assuming the fairway...
-
Identify the project organization structure applied for the selected project, either functional, matrix or projectized and explain how the organizational structure could benefit the organization and...
-
Air pollution generated by a steel mill is an example of a) a positive production externality. b) a negative production externality. c) a public good. d) the free-rider problem. State and local taxes...
-
1. Define breakeven point. Why is the breakeven point important to managers? 2. Describe four different ways cost- volume- profit analysis could be useful to management. 3. The purchasing manager for...
-
Refer to your answer to S7-9. a. Compute the total number of dinner cruises that Crystal Cruiseline must sell to breakeven. b. Compute the number of regular cruises and executive cruises the company...
-
Marty's Entrees produces frozen meals, which it sells for $ 9 each. The company uses the FIFO inventory costing method, and it computes a new monthly fixed manufacturing overhead rate based on the...
-
Riverside Corporation began 2020 owing noles payable of \(\$ 3.5\) million. During 2020. Riverside borrowed \(\$ 1.7\) million on notes payable and paid off \(\$ 1.6\) million of notes payable from...
-
In this chapter we showed in Figure 11.1 a purchases substantive audit programme, but we did not include the use of audit software. Suggest how audit software could have been used in programme steps...
-
Consider the following statements and explain why they may be true or false: (a) Tests of controls are tests designed to check the accounting and control systems are effective. (b) Substantive tests...
Study smarter with the SolutionInn App