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: 20,400 units quarter 1; 22,600 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 $10,100, office salaries $6,210, depreciation $4,430, insurance $1,650, utilities $820, and repairs expense $650. | |
| 4. | Unit selling price: $23. |
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 For the Six Months Ending June 30, 2020June 30, 2020For the Quarter Ending June 30, 2020 | |||||
| Quarter | |||||
| 1 | 2 | Six Months | |||
| Repairs ExpenseSales SalariesInsuranceSales CommissionsFixed ExpensesTotal FixedUtilitiesTotal VariableAdvertisingOffice SalariesDepreciationVariable ExpensesBudgeted Sales in UnitsDelivery ExpenseTotal Selling and Administrative Expenses | |||||
| Total Selling and Administrative ExpensesAdvertisingFixed ExpensesSales CommissionsBudgeted Sales in UnitsDelivery ExpenseVariable ExpensesDepreciationTotal FixedTotal VariableSales SalariesUtilitiesInsuranceOffice SalariesRepairs Expense | |||||
| Sales Salaries Variable Expenses Insurance Repairs Expense Office Salaries Sales Commissions Total Fixed Total Selling and Administrative Expenses Total Variable Utilities Advertising Depreciation Budgeted Sales in Units Fixed Expenses Delivery Expense | $ | $ | $ | ||
| Repairs Expense Advertising Sales Commissions Depreciation Sales Salaries Total Selling and Administrative Expenses Budgeted Sales in Units Total Fixed Fixed Expenses Insurance Delivery Expense Total Variable Utilities Office Salaries Variable Expenses | |||||
| Variable Expenses Advertising Utilities Budgeted Sales in Units Sales Commissions Insurance Sales Salaries Total Variable Total Fixed Total Selling and Administrative Expenses Delivery Expense Depreciation Fixed Expenses Office Salaries Repairs Expense | |||||
| Total Fixed Advertising Budgeted Sales in Units Delivery Expense Repairs Expense Insurance Total Selling and Administrative Expenses Depreciation Variable Expenses Sales Commissions Office Salaries Utilities Fixed Expenses Sales Salaries Total Variable | |||||
| Total VariableUtilitiesDelivery ExpenseDepreciationFixed ExpensesInsuranceVariable ExpensesOffice SalariesTotal Selling and Administrative ExpensesSales SalariesSales CommissionsAdvertisingTotal FixedBudgeted Sales in UnitsRepairs Expense | |||||
| Repairs Expense Total Selling and Administrative Expenses Total Fixed Total Variable Variable Expenses Budgeted Sales in Units Utilities Insurance Delivery Expense Advertising Sales Salaries Depreciation Fixed Expenses Office Salaries Sales Commissions | |||||
| Fixed Expenses Advertising Budgeted Sales in Units Total Selling and Administrative Expenses Insurance Total Variable Sales Salaries Delivery Expense Office Salaries Utilities Repairs Expense Sales Commissions Variable Expenses Total Fixed Depreciation | |||||
| Advertising Depreciation Budgeted Sales in Units Repairs Expense Sales Salaries Delivery Expense Insurance Fixed Expenses Office Salaries Sales Commissions Total Fixed Total Selling and Administrative Expenses Total Variable Utilities Variable Expenses | |||||
| Insurance Sales Salaries Delivery Expense Total Fixed Sales Commissions Total Selling and Administrative Expenses Utilities Total Variable Repairs Expense Variable Expenses Advertising Depreciation Budgeted Sales in Units Fixed Expenses Office Salaries | |||||
| Budgeted Sales in Units Sales Salaries Total Variable Total Fixed Total Selling and Administrative Expenses Utilities Variable Expenses Repairs Expense Advertising Delivery Expense Insurance Depreciation Fixed Expenses Office Salaries Sales Commissions | |||||
| Budgeted Sales in Units Variable Expenses Repairs Expense Advertising Delivery Expense Sales Commissions Office Salaries Depreciation Total Fixed Utilities Total Selling and Administrative Expenses Fixed Expenses Insurance Sales Salaries Total Variable | |||||
| Sales Commissions Office Salaries Fixed Expenses Variable Expenses Total Fixed Total Variable Total Selling and Administrative Expenses Utilities Repairs Expense Insurance Advertising Budgeted Sales in Units Delivery Expense Sales Salaries Depreciation | |||||
| Total Selling and Administrative ExpensesInsuranceRepairs ExpenseTotal VariableAdvertisingSales SalariesOffice SalariesSales CommissionsUtilitiesTotal FixedFixed ExpensesVariable ExpensesBudgeted Sales in UnitsDelivery ExpenseDepreciation | $ | $ | $ | ||
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Auditing Cases An Interactive Learning Approach
Authors: Steven M Glover, Douglas F Prawitt
4th Edition
0132423502, 978-0132423502
