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Flexible budget for selling and administrative expenses for a service company

Digital Solutions Inc. uses flexible budgets that are based on the following data:

Sales commissions $10\%$ of sales

Advertising expense $15\%$ of sales

Miscellaneous administrative expense $$8,000$ per month plus $4\%$ of sales

Office salaries expense $$49,000$ per month

Customer support expenses $$25,000$ per month plus $29\%$ of sales

Research and development expense $$77,000$ per month

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.

Open spreadsheet

Prepare a flexible selling and administrative expenses budget for October for sales volumes of $$600,000,$ $$700,000,$ and $$1,100,000.($Use Exhibit $5$ as a model.$)$ Enter all amounts as positive numbers.

Digital Solutions Inc.

Flexible Selling and Administrative Expenses Budget

For the Month Ending October $31$

Total sales $$600,000$ $$700,000$ $$1,100,000$

Variable cost:

$fill in the blank $3$

$fill in the blank $4$

$fill in the blank $5$

fill in the blank $7$

fill in the blank $8$

fill in the blank $9$

fill in the blank $11$

fill in the blank $12$

fill in the blank $13$

fill in the blank $15$

fill in the blank $16$

fill in the blank $17$

Total variable cost $fill in the blank $18$

$fill in the blank $19$

$fill in the blank $20$

Fixed cost:

$fill in the blank $22$

$fill in the blank $23$

$fill in the blank $24$

fill in the blank $26$

fill in the blank $27$

fill in the blank $28$

fill in the blank $30$

fill in the blank $31$

fill in the blank $32$

fill in the blank $34$

fill in the blank $35$

fill in the blank $36$

Total fixed cost $fill in the blank $37$

$fill in the blank $38$

$fill in the blank $39$

Total selling and administrative expenses $fill in the blank $40$

$fill in the blank $41$

$fill in the blank $42$