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Flexible Budget for Selling and Administrative Expenses for a Service Company Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales

Flexible Budget for Selling and Administrative Expenses for a Service Company

Digital Solutions Inc. uses flexible budgets that are based on the following data:

Sales commissions 14% of sales
Advertising expense 18% of sales
Miscellaneous administrative expense $8,000 per month plus 12% of sales
Office salaries expense $30,000 per month
Customer support expenses $13,000 per month plus 20% of sales
Research and development expense $31,000 per month

Prepare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, $500,000, and $600,000. (Use Exhibit 5 as a model.)

Digital Solutions Inc.
Flexible Selling and Administrative Expenses Budget
For the Month Ending October 31
Total sales $400,000 $500,000 $600,000
Variable cost:
$ $ $
Total variable cost $ $ $
Fixed cost:
$ $ $
Total fixed cost $ $ $
Total selling and administrative expenses $ $ $

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