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Flexible Budget for Selling and Administrative Expenses for a Service Company Digital Solutions Inc. uses flexible An accounting device used to plan and control resources
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Flexible Budget for Selling and Administrative Expenses for a Service Company
Digital Solutions Inc. uses flexible An accounting device used to plan and control resources of operational departments and divisions.budgets that are based on the following data:
Sales commissions 8% of sales Advertising expense 15% of sales Miscellaneous administrative expense $10,000 per month plus 4% of sales Office salaries expense $50,000 per month Customer support expenses $20,000 per month plus 30% of sales Research and development expense $75,000 per month Prepare a flexible selling and administrative expenses budget for October for sales volumes of $500,000, $750,000, and $1,000,000. (Use Exhibit 5 as a model.)
Digital Solutions Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending October 31 Total sales $500,000 $750,000 $1,000,000 Variable cost: - Cash
- Office salaries expense
- Sales commissions
- Supplies expense
- Wages expense
$ $ $ - Advertising expense
- Cash
- Office salaries expense
- Supplies expense
- Wages expense
- Miscellaneous administrative expense
- Office salaries expense
- Prepaid insurance
- Rent expense
- Wages expense
- Customer support expenses
- Rent expense
- Research and development expense
- Supplies expense
- Wages expense
Total variable cost $ $ $ Fixed cost: - Insurance expense
- Miscellaneous administrative expense
- Rent expense
- Supplies expense
- Wages expense
$ $ $ - Insurance expense
- Office salaries expense
- Prepaid insurance
- Rent expense
- Wages expense
- Customer support expenses
- Insurance expense
- Rent expense
- Supplies expense
- Wages expense
- Insurance expense
- Rent expense
- Research and development expense
- Supplies expense
- Wages expense
Total fixed cost $ $ $ Total selling and administrative expenses $ $ $
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