Flexible Budget for Selling and Administrative Expenses for a Service Company

Morningside Technologies Inc. uses flexible budgets that are based on the following data:

Sales commissions $6\%$ of sales

Advertising expense $17\%$ of sales

Miscellaneous administrative expense $$1,850$ per month plus $2\%$ of sales

Office salaries expense $$17,000$ per month

Customer support expenses $$2,600$ plus $3\%$ of sales

Research and development expense $4,600$ per month

Prepare a flexible selling and administrative expenses budget for April for sales volumes of $$115,000,$ $$145,000,$ and $$175,000.$ Enter all amounts as positive numbers.

Morningside Technologies Inc.

Flexible Selling and Administrative Expenses Budget

For the Month Ending April $30$

Total sales $$115,000$ $$145,000$ $$175,000$

Variable cost:

Sales commissions $fill in the blank $1$ $fill in the blank $2$ $fill in the blank $3$

Advertising expense fill in the blank $4$ fill in the blank $5$ fill in the blank $6$

Miscellaneous administrative expense fill in the blank $7$ fill in the blank $8$ fill in the blank $9$

Customer support expenses fill in the blank $10$ fill in the blank $11$ fill in the blank $12$

Total variable cost $fill in the blank $13$ $fill in the blank $14$ $fill in the blank $15$

Fixed cost:

Miscellaneous administrative expense $fill in the blank $16$ $fill in the blank $17$ $fill in the blank $18$

Office salaries expense fill in the blank $19$ fill in the blank $20$ fill in the blank $21$

Customer support expenses fill in the blank $22$ fill in the blank $23$ fill in the blank $24$

Research and development expense fill in the blank $25$ fill in the blank $26$ fill in the blank $27$

Total fixed cost $fill in the blank $28$ $fill in the blank $29$ $fill in the blank $30$

Total selling and administrative expenses $fill in the blank $31$ $fill in the blank $32$ $fill in the blank $33$

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