ABC Companys budgeted sales for June, July, and August are 15,400, 19,400, and 17,400 units respectively. The following cost behavior patterns are budgeted for ABC Companys operating expenses each month:

Fixed costs: salaries, $3,700; rent, $6,700; depreciation, $4,100; advertising, $4,900

Mixed costs: utilities, $4,700 + $0.40 per unit

Variable costs per unit sold: sales commissions, $3.70; marketing promotions, $2.70; supplies, $0.70; bad debt expense, $0.40

Required:

Prepare ABC Companys operating expense budget for June, July, and August.

ABC Companys budgeted sales for June, July, and August are 15,400, 19,400, and 17,400 units respectively. The following cost behavior patterns are budgeted for ABC Companys operating expenses each month:

Fixed costs: salaries, $3,700; rent, $6,700; depreciation, $4,100; advertising, $4,900

Mixed costs: utilities, $4,700 + $0.40 per unit

Variable costs per unit sold: sales commissions, $3.70; marketing promotions, $2.70; supplies, $0.70; bad debt expense, $0.40

Required:

Prepare ABC Companys operating expense budget for June, July, and August.

	June	July	August
Variable operating expenses:
Sales commissions
Marketing promotions
Supplies
Bad debts expense
Utilities
Total variable expense	$0	$0	$0
Fixed operating expenses:
Salaries
Rent
Depreciation
Advertising
Utilities
Total fixed expense	$0	$0	$0
Budgeted operating expense	$0	$0	$0