Question
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 9% of sales Advertising expense 16% of sales Miscellaneous administrative expense $11,500 per month plus 3% of sales Office salaries expense $48,000 per month Customer support expenses $16,000 per month plus 33% of sales Research and development expense $79,000 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.
Open spreadsheet
Prepare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, $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 Total sales $400,000 $900,000 $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 $ $ $
Prepare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, $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 Total sales $400,000 $900,000 $1,000,000 Variable cost: $ $ $ Total variable cost $ $ $ Fixed cost: $ $ $ Total fixed cost $ $ $ Total selling and administrative expenses $ $ $
Prepare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, $900,000, 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 $400,000 $900,000 $1,000,000 Variable cost: Sales commissions $36,000 $81,000 $90,000 Advertising expense 64,000 144,000 160,000 Miscellaneous administrative expense 12,000 27,000 30,000 Customer support expenses 132,000 297,000 330,000 Total variable cost $244,000 $549,000 $610,000 Fixed cost: Miscellaneous administrative expense $11,500 $11,500 $11,500 Office salaries expense 48,000 48,000 48,000 Customer support expenses 16,000 16,000 16,000 Research and development expense 79,000 79,000 79,000 Total fixed cost $154,500 $154,500 $154,500 Total selling and administrative expenses $398,500 $703,500 $764,500
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 | 9% of sales |
Advertising expense | 16% of sales |
Miscellaneous administrative expense | $11,500 per month plus 3% of sales |
Office salaries expense | $48,000 per month |
Customer support expenses | $16,000 per month plus 33% of sales |
Research and development expense | $79,000 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.
Open spreadsheet
Prepare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, $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 | ||||||
Total sales | $400,000 | $900,000 | $1,000,000 | |||
Variable cost: | ||||||
| $ | $ | $ | |||
| ||||||
| ||||||
| ||||||
Total variable cost | $ | $ | $ | |||
Fixed cost: | ||||||
| $ | $ | $ | |||
| ||||||
| ||||||
| ||||||
Total fixed cost | $ | $ | $ | |||
Total selling and administrative expenses | $ | $ | $ |
Prepare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, $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 | ||||||
Total sales | $400,000 | $900,000 | $1,000,000 | |||
Variable cost: | ||||||
$ | $ | $ | ||||
Total variable cost | $ | $ | $ | |||
Fixed cost: | ||||||
$ | $ | $ | ||||
Total fixed cost | $ | $ | $ | |||
Total selling and administrative expenses | $ | $ | $ |
Prepare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, $900,000, 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 | $400,000 | $900,000 | $1,000,000 | |||
Variable cost: | ||||||
Sales commissions | $36,000 | $81,000 | $90,000 | |||
Advertising expense | 64,000 | 144,000 | 160,000 | |||
Miscellaneous administrative expense | 12,000 | 27,000 | 30,000 | |||
Customer support expenses | 132,000 | 297,000 | 330,000 | |||
Total variable cost | $244,000 | $549,000 | $610,000 | |||
Fixed cost: | ||||||
Miscellaneous administrative expense | $11,500 | $11,500 | $11,500 | |||
Office salaries expense | 48,000 | 48,000 | 48,000 | |||
Customer support expenses | 16,000 | 16,000 | 16,000 | |||
Research and development expense | 79,000 | 79,000 | 79,000 | |||
Total fixed cost | $154,500 | $154,500 | $154,500 | |||
Total selling and administrative expenses | $398,500 | $703,500 | $764,500 |
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