Flexible Budget for Selling and Administrative Expenses

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

Sales commissions	6% of sales
Advertising expense	25% of sales
Miscellaneous selling expense	$1,800 plus 4% of sales
Office salaries expense	$12,000 per month
Office supplies expense	5% of sales
Miscellaneous administrative expense	$1,300 per month plus 3% of sales

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Prepare a flexible selling and administrative expenses budget for January 2014, for sales volumes of $80,000, $100,000, and $120,000. (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, 2014
Total sales		$80,000		$100,000		$120,000
Variable cost:
Sales commissions		$ Correct 10		$ Correct 11		$ Correct 12
Advertising expense		Correct 14		Correct 15		Correct 16
Miscellaneous selling expense		Correct 18		Correct 19		Correct 20
Office supplies expense		Correct 22		Correct 23		Correct 24
Miscellaneous administrative expense		Correct 26		Correct 27		Correct 28
Total variable cost		$ Correct 30		$ Correct 31		$ Correct 32
Fixed cost:
Miscellaneous selling expense		$ Correct 35		$ Correct 36		$ Correct 37
Office salaries expense		Correct 39		Correct 40		Correct 41
Miscellaneous administrative expense		Correct 43		Correct 44		Correct 45
Total fixed cost		$ Correct 47		$ Correct 48		$ Correct 49
Total selling and administrative expenses		$ Correct 51		$ Correct 52		$ Correct 53