Refer to 4-19. Jaime’s Hat Shop expects to incur the following expenses for each month of the third quarter of this year:

Rent (30% general and administrative, 70% selling) $1,200 Utilities (30% general and administrative, 70% selling) 600 Advertising 400 Salaries (30% general and administrative, 70% selling) 5,000 Commissions (for each hat sold) 2 In January, Jaime had prepaid the rent for the whole year. Jaime plans to pay for all the other expenses in the month they occur.

Required: (1) Prepare a selling expenses budget for the third quarter of this year. (2) Prepare a general and administrative expenses budget for the third quarter of this year.  lp85