1. For May and June, find:
   1. S&A Expense
   2. Cash Disbursement for S&A Expense

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Selling and Administrative Expense Budget At Royal, the selling and administrative expenses budget is divided into variable and fixed components. The variable selling and administrative expenses are $0.50 per unit sold. Fixed selling and administrative expenses are $70,000 per month. The fixed selling and administrative expenses include $10,000 in costs - primarily depreciation - that are not cash outflows of the current month April Variable S&A Expenses = $0.50 * 20,000 = $10,000 April Fixed S&A Expenses = $70,000 Total April S&A Expenses = $80,000 Total April Cash Disbursements for S&A=$80,000 - $10,000 = $70,000 Royal's selling and administrative expense budget lists the budgeted expenses for areas other than manufacturing and it is typically a compilation of many smaller, individual budgets. Royal has a variable and fixed component to its selling and administrative expenses. The company estimates variable selling and administrative expenses at 50 cents per unit sold. Fixed selling and administrative expenses are estimated at $70,000 per month. Of this amount, $10,000 are noncash expenses, primarily depreciation