Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help asap Pearl, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $50,000 in January, $60,000

help asap
image text in transcribed
image text in transcribed
image text in transcribed
Pearl, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $50,000 in January, $60,000 in February, and $70,000 in March. Variable and fixed selling and administrative expenses are as follows: Variable Expenses: Power cost ( 40% of sales) Miscellaneous expenses: (10\% of sales) Fixed Expenses: Salaries expense: $6,000 per month Rent expense; $5,000 per month Fixed Expenses: Salaries expense: $6,000 per month Rent expense: $5,000 per month Depreciation expense: $1,000 per month Power cost/fixed portion: $800 per month Miscellaneous expenses/fixed portion: $1,000 per month Calculate total budgeted selling and administrative expenses for the month of January. A. $48,800 B. $25,000 C. $43,800 D. $38,800

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sarbanes Oxley Internal Controls Effective Auditing With AS5 CobiT And ITIL

Authors: Robert R. Moeller

1st Edition

0470170921, 978-0470170922

More Books

Students also viewed these Accounting questions