Bates & Hill Fabricators’ marketing department has identified the following monthly expenses that will be needed to support the  company’s sales and administrative functions. In addition to these monthly expenses,  the company will pay a commission to its salespeople equal to 8% of the sales revenue from each brick  sold. The company expects bad debt expense to be 2% of sales revenue.

Depreciation          . . . . . . . . . . . . . . $14,000

Sales staff salaries . . . . . . . . . . . . . . $27,000

Advertising              . . . . . . . . . . . . . . $2,500

Executive salaries  . . . . . . . . . . . . . . $38,000

Miscellaneous        . . . . . . . . . . . . . . $1,900

Required

Prepare Bates & Hill’s selling and administrative expense budget for the first quarter of the coming year.