Exercise 22-12

Kirkland 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: 20,400 units quarter 1; 22,600 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 $10,100, office salaries $6,210, depreciation $4,430, insurance $1,650, utilities $820, and repairs expense $650.
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.)

KIRKLAND COMPANY Selling and Administrative Expense Budget June 30, 2020For the Quarter Ending June 30, 2020For the Six Months Ending June 30, 2020
	Quarter
	1		2		Six Months
UtilitiesVariable ExpensesRepairs ExpenseDelivery ExpenseAdvertisingDepreciationFixed ExpensesOffice SalariesSales CommissionsBudgeted Sales in UnitsInsuranceTotal Selling and Administrative ExpensesSales SalariesTotal FixedTotal Variable
Office SalariesRepairs ExpenseSales CommissionsTotal Selling and Administrative ExpensesInsuranceDepreciationVariable ExpensesTotal VariableAdvertisingSales SalariesTotal FixedBudgeted Sales in UnitsDelivery ExpenseUtilitiesFixed Expenses
Repairs Expense Sales Salaries Insurance Advertising Total Variable Total Selling and Administrative Expenses Variable Expenses Sales Commissions Utilities Budgeted Sales in Units Total Fixed Depreciation Office Salaries Delivery Expense Fixed Expenses	$		$		$
Delivery Expense Budgeted Sales in Units Fixed Expenses Total Fixed Depreciation Insurance Office Salaries Repairs Expense Sales Commissions Utilities Sales Salaries Total Selling and Administrative Expenses Total Variable Variable Expenses Advertising
Advertising Budgeted Sales in Units Utilities Fixed Expenses Sales Salaries Sales Commissions Total Fixed Total Selling and Administrative Expenses Total Variable Delivery Expense Depreciation Variable Expenses Insurance Office Salaries Repairs Expense
Total Selling and Administrative Expenses Depreciation Total Fixed Advertising Sales Commissions Sales Salaries Insurance Repairs Expense Total Variable Budgeted Sales in Units Utilities Office Salaries Variable Expenses Delivery Expense Fixed Expenses
Budgeted Sales in UnitsVariable ExpensesTotal VariableDepreciationTotal Selling and Administrative ExpensesAdvertisingFixed ExpensesSales CommissionsDelivery ExpenseInsuranceOffice SalariesSales SalariesTotal FixedRepairs ExpenseUtilities
Office Salaries Sales Salaries Total Fixed Budgeted Sales in Units Total Selling and Administrative Expenses Delivery Expense Depreciation Fixed Expenses Variable Expenses Insurance Sales Commissions Total Variable Repairs Expense Advertising Utilities
Repairs Expense Total Selling and Administrative Expenses Delivery Expense Depreciation Utilities Insurance Total Variable Variable Expenses Office Salaries Sales Commissions Sales Salaries Advertising Budgeted Sales in Units Fixed Expenses Total Fixed
Fixed Expenses Insurance Repairs Expense Budgeted Sales in Units Utilities Office Salaries Total Variable Advertising Sales Commissions Variable Expenses Delivery Expense Sales Salaries Depreciation Total Fixed Total Selling and Administrative Expenses
Total Fixed Office Salaries Depreciation Total Selling and Administrative Expenses Sales Salaries Fixed Expenses Total Variable Budgeted Sales in Units Repairs Expense Utilities Delivery Expense Variable Expenses Advertising Insurance Sales Commissions
Variable Expenses Office Salaries Total Variable Sales Commissions Utilities Insurance Advertising Fixed Expenses Repairs Expense Sales Salaries Total Fixed Budgeted Sales in Units Total Selling and Administrative Expenses Delivery Expense Depreciation
Office Salaries Fixed Expenses Depreciation Insurance Total Fixed Delivery Expense Variable Expenses Total Variable Sales Commissions Repairs Expense Sales Salaries Total Selling and Administrative Expenses Utilities Budgeted Sales in Units Advertising
Utilities Repairs Expense Advertising Sales Commissions Total Selling and Administrative Expenses Office Salaries Budgeted Sales in Units Sales Salaries Total Fixed Total Variable Insurance Delivery Expense Variable Expenses Depreciation Fixed Expenses
DepreciationVariable ExpensesDelivery ExpenseSales CommissionsTotal FixedInsuranceAdvertisingTotal Selling and Administrative ExpensesSales SalariesTotal VariableOffice SalariesFixed ExpensesBudgeted Sales in UnitsRepairs ExpenseUtilities	$		$		$