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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 6% of sales Advertising
Flexible Budget for Selling and Administrative Expenses
Fuller Enterprises uses flexible budgets that are based on the following data:
Sales commissions | 6% of sales |
Advertising expense | 20% of sales |
Customer support expense | $2,000 plus 16% of sales |
Office salaries expense | $30,000 per month |
Miscellaneous administrative expense | $3,000 plus 5% of sales |
Research and development expense | $10,000 per month |
Prepare a flexible selling and administrative expenses budget for July for sales volumes of $600,000, $800,000, and $1,000,000. (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 | $600,000 | $800,000 | $1,000,000 |
Variable cost: | |||
Sales commissions | $fill in the blank 2 | $fill in the blank 3 | $fill in the blank 4 |
Advertising expense | fill in the blank 6 | fill in the blank 7 | fill in the blank 8 |
Customer support expense | fill in the blank 10 | fill in the blank 11 | fill in the blank 12 |
Miscellaneous administrative expense | fill in the blank 14 | fill in the blank 15 | fill in the blank 16 |
Total variable cost | $fill in the blank 17 | $fill in the blank 18 | $fill in the blank 19 |
Fixed cost: | |||
Customer support expense | $fill in the blank 21 | $fill in the blank 22 | $fill in the blank 23 |
Office salaries expense | fill in the blank 25 | fill in the blank 26 | fill in the blank 27 |
Miscellaneous administrative expense | fill in the blank 29 | fill in the blank 30 | fill in the blank 31 |
Research and development expense | fill in the blank 33 | fill in the blank 34 | fill in the blank 35 |
Total fixed cost | $fill in the blank 36 | $fill in the blank 37 | $fill in the blank 38 |
Total selling and administrative expenses | $fill in the blank 39 | $fill in the blank 40 | $fill in the blank 41 |
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