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Flexible Budget for Selling and Administrative Expenses Fuller Enterprises uses flexible budgets that are based on the following data: Sales commissions 5% of sales Advertising
Flexible Budget for Selling and Administrative Expenses
Fuller Enterprises uses flexible budgets that are based on the following data:
Sales commissions | 5% of sales |
Advertising expense | 25% of sales |
Customer support expense | $2,700 plus 3% of sales |
Office salaries expense | $18,000 per month |
Miscellaneous administrative expense | $3,000 plus 2% of sales |
Research and development expense | $1,900 per month |
Prepare a flexible selling and administrative expenses budget for July for sales volumes of $120,000, $150,000, and $180,000. (Use Exhibit 5 as a model.) Enter all amounts as positive numbers.
FULLER ENTERPRISES | |||
Flexible Selling and Administrative Expenses Budget | |||
For the Month Ending July 31 | |||
Total sales | $120,000 | $150,000 | $180,000 |
Variable cost: | |||
$ | $ | $ | |
Total variable cost | $ | $ | $ |
Fixed cost: | |||
$ | $ | $ | |
Total fixed cost | $ | $ | $ |
Total selling and administrative expenses | $ | $ | $ |
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