A manufacturing company's budgeted income statement includes the following data:

The budget assumes that 60% of commission expenses are paid in the month they were incurred and the remaining 40% are paid one month later. In addition, 50% of salary expenses are paid in the month incurred and the remaining 50% are paid one month later. Miscellaneous expenses, rent expense and utility expenses are assumed to be paid in the same month in which they are incurred. Insurance was prepaid for the year on January 1.

How much is the total of the budgeted cash payments for selling and administrative expenses for the month of May?

A) $54,200

B) $53,250

C) $54,400

D) $53,900

Data extracted from budgeted income statement Sales Mar $120,000 Commission expense (15% of sales) Salaries expense Miscellaneous expense 4% of sales Rent expense Utility expense Insurance expense Depreciation expense 18,000 30,000 4,800 3,600 1,900 2,100 4,400 Apr May $90,000 $95,000 13,500 30,000 3,600 3,600 1,900 2,100 4,400 Jun $100,000 14,250 15,000 30,000 30,000 3,800 3,600 1,900 2,100 4,400 4,000 3,600 1,900 2,100 4,400