Question
Alfa, Inc. makes and sells balls. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of
Alfa, Inc. makes and sells balls. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available:
Variable Cost Per Unit Sold Monthly Fixed Cost
Sales commissions 0.60 6,000
Shipping 1.20
Advertising 0.30
Executive salaries 40,000
Depreciation on office equipment 8,000
Other 0.35 28,000
Expenses are paid in the month incurred. If the company has budgeted to sell 8,000 balls in October, how much is the total budgeted variable selling and administrative expenses for October?
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