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 18% of sales Miscellaneous administrative expense $5,500 per month plus 12% of sales office salaries expense $29,000 per month Customer support expenses $12,000 per month plus 20% of sales Research and development expense $32,000 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 5400000 $500000 $600000 Variable cost: Total variable cost Fixed cost Total fixed cost Total selling and administrative expenses Exhibits Flerable Budget 0 Lavel 3 10.000.Step 1 B c 1 Colter Manutacturing Company 12 Assembly Department Budget 3 For the Year Ending July 31, 20Y8 4 Level 1 Level 2 6. Units of production 8,000 9.000 6 Variable cost 7 Direct labor ($5 per unit) $40,000 $45,000 8 Electric power ($0.50 per unit 4,000 4.500 9 Total variable cost $4.000 $49,500 10 Fixed cost 11 Electric power $1,000 $ 1.000 12 Supervisor unes 15.000 115,000 13 Total fixed 0 $16.000 $16.000 14 Total departments 560.000 $65600 15 $80,000 5,000 $55.000 Step 2- $ 1000 15.000 5 16.000 $7110001 Step 3 A flexible budget is constructed as follows. Step 1 Identify the relevant activity levels. The relevant levels of activity could be expressed in units, machine hours, direct labor hours, some other activity based in Exhibit 5, the levels of activity are 8.000 9400 and 10.000 units or production Step 2. Identify the fixed and variable cost comments of the cost eine bedeutedIn Exhibit 5 the electric power cost is separated into its fixed cost $1.000 per year and Variable cost $0.50 per unit. The direct la variasla cost, and the supervisor salities are all fixed cont Step Prepare this idea activity level mutiplying the tables per unit in hemcinthly US