ABC Companys budgeted sales for June, July, and August are 13,400, 17,400, and 15,400 units respectively. The following cost behavior patterns are budgeted for ABC Companys operating expenses each month:

Fixed costs: salaries, $2,700; rent, $5,700; depreciation, $3,100; advertising, $3,900

Mixed costs: utilities, $3,700 + $0.20 per unit

Variable costs per unit sold: sales commissions, $2.70; marketing promotions, $1.70; supplies, $0.55; bad debt expense, $0.30

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