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Flexible Budget for Selling and Administrative Expenses for a Service Company Cloud Productivity Inc. uses flexible budgets that are based on the following data: Sales
Flexible Budget for Selling and Administrative Expenses for a Service Company
Cloud Productivity Inc. uses flexible budgets that are based on the following data:
Sales commissions | 15% of sales |
Advertising expense | 20% of sales |
Miscellaneous administrative expense | $7,500 per month plus 12% of sales |
Office salaries expense | $30,000 per month |
Customer support expenses | $14,000 per month plus 20% of sales |
Research and development expense | $31,000 per month |
Prepare a flexible selling and administrative expenses budget for March for sales volumes of $400,000, $500,000, and $600,000. (Use Exhibit 5 as a model.)
Cloud Productivity Inc. | |||
Flexible Selling and Administrative Expenses Budget | |||
For the Month Ending March 31 | |||
Total sales | $400000 | $500000 | $600000 |
Variable cost: | |||
Sales commissions | $ | $ | $ |
Advertising expense | |||
Miscellaneous administrative expense | |||
Customer support expenses | |||
Total variable cost | $ | $ | $ |
Fixed cost: | |||
Miscellaneous administrative expense | $ | $ | $ |
Office salaries expense | |||
Customer support expenses | |||
Research and development expense | |||
Total fixed cost | $ | $ | $ |
Total selling and administrative expenses | $ | $ | $ |
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