Flexible Budget for Selling and Administrative Expenses

Agent Blaze uses flexible budgets that are based on the following data:

Sales commissions	7% of sales
Advertising expense	24% of sales
Miscellaneous selling expense	$2,600 plus 4% of sales
Office salaries expense	$17,000 per month
Office supplies expense	5% of sales
Miscellaneous administrative expense	$1,850 per month plus 3% of sales

Prepare a flexible selling and administrative expenses budget for January 2016, for sales volumes of $115,000, $145,000, and $175,000. (Use Exhibit 5 as a model.) Enter all amounts as positive numbers.

Agent Blaze Flexible Selling and Administrative Expenses Budget For the Month Ending January 31, 2016 Total sales Variable cost: $115,000 $145,000 $175,000 Sales commissions Advertising expense Miscellaneous selling expense Office supplies expense Miscellaneous administrative expense Total variable cost Fixed cost: Miscellaneous selling expense Office salaries expense Miscellaneous administrative expense Total fixed cost Total selling and administrative expenses