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

Advertising expense

Miscellaneous administrative expense

Office salaries expense

Customer support expenses

Research and development expense

$14\%$ of sales

$18\%$ of sales

$$8,500$ per month plus $12\%$ of sales

$$28,000$ per month

$$12,000$ per month plus $20\%$ of sales

$$32,000$ 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 $4$ as a model.$)$

Digital Solutions Inc.

Flexible Selling and Administrative Expenses Budget

For the Month Ending October $31$

Fixed cost:

Miscellaneous administrative expense

Office salaries expense

Customer support expenses

Research and development expense

Total fixed cost

Total selling and administrative expenses