Exercise 22-12

Carla Vista Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2020, the following data are available.

1. Sales: 20,000 units quarter 1; 22,700 units quarter 2.

2. Variable costs per dollar of sales: sales commissions 5%, delivery expense 2%, and advertising 3%.

3. Fixed costs per quarter: sales salaries $10,800, office salaries $6,360, depreciation $4,370, insurance $1,610, utilities $850, and repairs expense $620.

4. Unit selling price: $23.

Prepare a selling and administrative expense budget by quarters for the first 6 months of 2020. (List variable expenses before fixed expense.)