Pearl, Inc. has prepared the operating budget for the first quarter of the year. The company...
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Pearl, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $40,000 in January, $50,000 in February, and $60,000 in March. Variable and fixed selling and administrative expenses are as follows: Variable Expenses: Power cost (30% of sales) Miscellaneous expenses: (5% of sales) Fixed Expenses: Salaries expense: $8,000 per month Rent expense: $5,000 per month Depreciation expense: $1,400 per month Power cost/fixed portion: $800 per month Miscellaneous expenses/fixed portion: $1,200 per month Calculate total budgeted selling and administrative expenses for the month of January. A. $30,400 B. $37,400 C. $33,900 D. $14,000 Pearl, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $40,000 in January, $50,000 in February, and $60,000 in March. Variable and fixed selling and administrative expenses are as follows: Variable Expenses: Power cost (30% of sales) Miscellaneous expenses: (5% of sales) Fixed Expenses: Salaries expense: $8,000 per month Rent expense: $5,000 per month Depreciation expense: $1,400 per month Power cost/fixed portion: $800 per month Miscellaneous expenses/fixed portion: $1,200 per month Calculate total budgeted selling and administrative expenses for the month of January. A. $30,400 B. $37,400 C. $33,900 D. $14,000
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Answer rating: 100% (QA)
The correct answer is A 30400 Please find attached calculations Variable Power Cort C30 ... View the full answer
Related Book For
Financial Accounting
ISBN: 9781618533111
6th Edition
Authors: Michelle L. Hanlon, Robert P. Magee, Glenn M. Pfeiffer, Thomas R. Dyckman
Posted Date:
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