Flexible budget for selling and administrative expenses for a service company Digital Solutions Inc. uses flexible budgets
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Flexible budget for selling and administrative expenses for a service company
Digital Solutions Inc. uses flexible budgets that are based on the following data:
Line Item Description | Value |
---|---|
Sales commissions | 15% of sales |
Advertising expense | 20% of sales |
Miscellaneous administrative expense | $5,500 per month plus 12% of sales |
Office salaries expense | $28,000 per month |
Customer support expenses | $14,000 per month plus 20% of sales |
Research and development expense | $32,000 per month |
flexible selling and administrative expenses budget for October for sales volumes of $400,000, $500,000, and $600,000.
Line Item Description | Amount | Amount | Amount |
---|---|---|---|
Total sales | $400,000 | $500,000 | $600,000 |
Variable cost: | |||
CashOffice salaries expenseSales commissionsSupplies expenseWages expense | $- Select - | $- Select - | $- Select - |
Advertising expenseCashOffice salaries expenseSupplies expenseWages expense | - Select - | - Select - | - Select - |
Miscellaneous administrative expenseOffice salaries expensePrepaid insuranceRent expenseWages expense | - Select - | - Select - | - Select - |
Customer support expensesRent expenseResearch and development expenseSupplies expenseWages expense | - Select - | - Select - | - Select - |
Total variable cost | $Total variable cost | $Total variable cost | $Total variable cost |
Fixed cost: | |||
Insurance expenseMiscellaneous administrative expenseRent expenseSupplies expenseWages expense | $- Select - | $- Select - | $- Select - |
Insurance expenseOffice salaries expensePrepaid insuranceRent expenseWages expense | - Select - | - Select - | - Select - |
Customer support expensesInsurance expenseRent expenseSupplies expenseWages expense | - Select - | - Select - | - Select - |
Insurance expenseRent expenseResearch and development expenseSupplies expenseWages expense | - Select - | - Select - | - Select - |
Total fixed cost | $Total fixed cost | $Total fixed cost | $Total fixed cost |
Total selling and administrative expenses | $Total selling and administrative expenses | $Total selling and administrative expenses | $Total selling and administrative expenses |
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