Exercise 8-6 Selling and Administrative Expense Budget [LO7]

The budgeted unit sales of Haerve Company for the upcoming fiscal year are provided below:

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
Budgeted unit sales	11,200	13,800	10,300	9,100

The companys variable selling and administrative expenses per unit are $2.00. Fixed selling and administrative expenses include advertising expenses of $14,000 per quarter, executive salaries of $44,000 per quarter, and depreciation of $18,000 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 $5,000 will be paid in the 3rd Quarter.

Required:

Prepare the companys selling and administrative expense budget for the upcoming fiscal year. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

Haerve Company Selling and Administrative Expense Budget
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
(Click to select)InsuranceProperty taxesVariable selling and administrative expensesExecutive salariesDepreciation	$	$	$	$	$
Fixed selling and administrative expenses:
(Click to select)Variable selling and administrative expensesBorrowingsInterestEquipment purchsesAdvertising
(Click to select)Variable selling and administrative expensesBorrowingsInterestEquipment purchasesExecutive salaries
(Click to select)BorrowingsEquipment purchasesVariable selling and administrative expensesInterestInsurance
(Click to select)Property taxesVariable selling and administrative expensesBorrowingsInterestEquipment purchases
(Click to select)DepreciationVariable selling and administrative expensesInterestEquipment purchasesBorrowings
Total fixed selling and administrative expenses
Total selling and administrative expenses
(Click to select)Less depreciationLess advertisingLess executive salariesLess insuranceLess property taxes
Cash disbursements for selling and administrative expenses	$	$	$	$	$