ABC Companys budgeted sales for June, July, and August are 14,400, 18,400, and 16,400 units respectively. The following cost behavior patterns are budgeted for ABC Companys operating expenses each month:

Fixed costs: salaries, $3,200; rent, $6,200; depreciation, $3,600; advertising, $4,400

Mixed costs: utilities, $4,200 + $0.70 per unit

Variable costs per unit sold: sales commissions, $3.20; marketing promotions, $2.20; supplies, $0.80; bad debt expense, $0.55

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
Fixed operating expenses:
Salaries
Rent
Depreciation
Advertising
Utilities
Total fixed expense
Budgeted operating expense