ABC Company's 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 Company's 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 the budget of operating expenses of the company ABC for the months of June, July and August.

ABC Company's 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 Company's 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 the budget of operating expenses of the company ABC for the months of June, July and August.

	June	Julio	August
Variable operating expenses:
Sales commissions
marketing promotions
supplies
bad debt expense
utilities
Total Variable Expense	$0	$0	$0
Fixed operating expenses:
Wages
Rent
Depreciation
Advertising
utilities
total fixed expenses	$0	$0	$0
Budgeted operating expenses	$0	$0	$0