Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
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 6% of sales Advertising expense 13% of sales Miscellaneous administrative expense $12,000 per month plus 4% of sales Office salaries expense $48,000 per month Customer support expenses $17,000 per month plus 28% of sales Research and development expense $72,000 per month This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Prepare a flexible selling and administrative expenses budget for October for sales volumes of $600,000, 900,000, and $1,000,000. (Use Exhibit 5 as a model.) Enter all amounts as positive numbers. Digital Solutions Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending October 31 $600,000 $900,000 $1,000,000 Total sales Variable cost: Total variable cost Fixed cost: $ Accounting numeric field Total fixed cost Total selling and administrative expenses - G H Tom 21 A D 5 LAIR Sales commissions os of was Advertising expense 13% of wales Miscellaneous administrative expense $12,000 per month 4 of was Office salaries expense $40,000 per month . Customer support expenses $17.000 per month plus 20% of sales 11 Research and development expense $72,000 per month 2 13 Select the corresponding accounts in the dropdowns in cells A2124, A27:30Using formulas and cell references, perform the required analysis and input your answers into the green cate in the CD and 14 all amounts as positive numbers. Transfer the numeric results for the green entry cells (C21:25, C27:32) into the appropriate fields in CNOW2 for grading 15 16 Digital Solutions Inc. 17 Flexible Selling and Administrative Expenses Budget 18 For the Month Ending October 31 Formulas 19 Total sales $600.000 $900 000 $1.000.000 20 Variable cost: 1 22 23 34 35 Total variable cost 26 Flwed cost Data

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

Organize and support your main points

Answered: 1 week ago

Question

Move smoothly from point to point

Answered: 1 week ago

Question

Outlining Your Speech?

Answered: 1 week ago