Question
Kirkland Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2020, the following
Kirkland Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2020, the following data are available.
1. | Sales: 20,800 units quarter 1; 22,100 units quarter 2. | |
2. | Variable costs per dollar of sales: sales commissions 5%, delivery expense 2%, and advertising 3%. | |
3. | Fixed costs per quarter: sales salaries $10,900, office salaries $6,160, depreciation $4,490, insurance $2,080, utilities $880, and repairs expense $670. | |
4. | Unit selling price: $24. |
Prepare a selling and administrative expense budget by quarters for the first 6 months of 2020. (List variable expenses before fixed expense.)
KIRKLAND COMPANY Selling and Administrative Expense Budget June 30, 2020For the Six Months Ending June 30, 2020For the Quarter Ending June 30, 2020 | |||||
Quarter | |||||
1 | 2 | Six Months | |||
Office SalariesTotal FixedTotal Selling and Administrative ExpensesAdvertisingSales SalariesUtilitiesSales CommissionsDepreciationFixed ExpensesDelivery ExpenseRepairs ExpenseBudgeted Sales in UnitsInsuranceTotal VariableVariable Expenses | |||||
Fixed ExpensesAdvertisingUtilitiesRepairs ExpenseSales CommissionsInsuranceBudgeted Sales in UnitsTotal Selling and Administrative ExpensesTotal FixedDepreciationOffice SalariesSales SalariesTotal VariableDelivery ExpenseVariable Expenses | |||||
AdvertisingDelivery ExpenseRepairs ExpenseBudgeted Sales in UnitsOffice SalariesInsuranceSales SalariesVariable ExpensesTotal VariableUtilitiesFixed ExpensesDepreciationTotal Selling and Administrative ExpensesSales CommissionsTotal Fixed | $ | $ | $ | ||
Repairs ExpenseSales CommissionsOffice SalariesVariable ExpensesInsuranceTotal Selling and Administrative ExpensesBudgeted Sales in UnitsUtilitiesAdvertisingTotal FixedSales SalariesTotal VariableDepreciationFixed ExpensesDelivery Expense | |||||
Total Selling and Administrative ExpensesOffice SalariesInsuranceDelivery ExpenseTotal FixedUtilitiesSales CommissionsBudgeted Sales in UnitsDepreciationVariable ExpensesTotal VariableSales SalariesAdvertisingRepairs ExpenseFixed Expenses | |||||
Repairs ExpenseSales CommissionsOffice SalariesBudgeted Sales in UnitsDelivery ExpenseSales SalariesTotal FixedFixed ExpensesDepreciationInsuranceAdvertisingUtilitiesTotal Selling and Administrative ExpensesVariable ExpensesTotal Variable | |||||
Fixed ExpensesOffice SalariesTotal FixedAdvertisingBudgeted Sales in UnitsInsuranceSales CommissionsTotal VariableDepreciationTotal Selling and Administrative ExpensesRepairs ExpenseDelivery ExpenseVariable ExpensesUtilitiesSales Salaries | |||||
AdvertisingDepreciationSales SalariesFixed ExpensesUtilitiesBudgeted Sales in UnitsOffice SalariesDelivery ExpenseTotal VariableRepairs ExpenseSales CommissionsVariable ExpensesInsuranceTotal FixedTotal Selling and Administrative Expenses | |||||
Budgeted Sales in UnitsSales CommissionsTotal FixedUtilitiesFixed ExpensesDepreciationInsuranceVariable ExpensesDelivery ExpenseSales SalariesTotal VariableOffice SalariesAdvertisingTotal Selling and Administrative ExpensesRepairs Expense | |||||
Delivery ExpenseOffice SalariesUtilitiesAdvertisingSales CommissionsTotal VariableTotal FixedBudgeted Sales in UnitsFixed ExpensesRepairs ExpenseDepreciationInsuranceVariable ExpensesSales SalariesTotal Selling and Administrative Expenses | |||||
Variable ExpensesSales CommissionsTotal Selling and Administrative ExpensesDelivery ExpenseTotal FixedDepreciationFixed ExpensesBudgeted Sales in UnitsUtilitiesAdvertisingRepairs ExpenseOffice SalariesInsuranceTotal VariableSales Salaries | |||||
AdvertisingRepairs ExpenseInsuranceSales CommissionsUtilitiesDelivery ExpenseTotal FixedTotal VariableSales SalariesBudgeted Sales in UnitsDepreciationTotal Selling and Administrative ExpensesVariable ExpensesOffice SalariesFixed Expenses | |||||
Fixed ExpensesOffice SalariesSales CommissionsTotal Selling and Administrative ExpensesAdvertisingSales SalariesDepreciationInsuranceDelivery ExpenseRepairs ExpenseTotal FixedTotal VariableUtilitiesVariable ExpensesBudgeted Sales in Units | |||||
AdvertisingTotal VariableTotal FixedInsuranceVariable ExpensesTotal Selling and Administrative ExpensesUtilitiesDepreciationOffice SalariesSales SalariesSales CommissionsBudgeted Sales in UnitsRepairs ExpenseFixed ExpensesDelivery Expense | |||||
Sales CommissionsSales SalariesRepairs ExpenseTotal VariableBudgeted Sales in UnitsUtilitiesTotal FixedAdvertisingFixed ExpensesDepreciationDelivery ExpenseVariable ExpensesTotal Selling and Administrative ExpensesInsuranceOffice Salaries | $ | $ | $ |
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