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Flexible Budget for Selling and Administrative Expenses Agent Blaze uses flexible budgets that are based on the following data: Sales commissions 5% of sales Advertising
Flexible Budget for Selling and Administrative Expenses
Agent Blaze uses flexible budgets that are based on the following data:
Sales commissions | 5% of sales |
Advertising expense | 17% of sales |
Miscellaneous selling expense | $2,600 plus 3% of sales |
Office salaries expense | $17,000 per month |
Office supplies expense | 4% of sales |
Miscellaneous administrative expense | $1,850 per month plus 2% 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 | $115,000 | $145,000 | $175,000 |
Variable cost: | |||
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 |
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