EXERCISE 86 Selling and Administrative Expense Budget

1st Quarter 12000

2nd Quarter 14000

3rd Quarter 11000

4th Quarter 10000

The companys variable selling and administrative expenses per unit are $2.75. Fixed selling and administrative expenses include advertising expenses of $12,000 per quarter, executive salaries of $40,000 per quarter, and depreciation of $16,000 per quarter. In addition, the company will make insurance payments of $6,000 in the 2nd Quarter and $6,000 in the 4th Quarter. Finally, property taxes of $6,000 will be paid in the 3rd Quarter.

Required: Prepare the companys selling and administrative expense budget for the upcoming fiscal year.