ANSWER FOR A RATING IF CORRECT - ASAP ACCOUNTING

eBook

Show Me How

Office 365

Question Content Area

Flexible budget for selling and administrative expenses for a service company

Digital Solutions Inc. uses flexible budgets that are based on the following data:

Sales commissions	9% of sales
Advertising expense	14% of sales
Miscellaneous administrative expense	$8,500 per month plus 3% of sales
Office salaries expense	$54,000 per month
Customer support expenses	$15,000 per month plus 30% of sales
Research and development expense	$78,000 per month

Digital Solutions Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending October 31