Question
Mon Inc., an automobile producer, has the following production & sales budget for the beginning of the upcoming year: January February March April May Full
Mon Inc., an automobile producer, has the following production & sales budget for the beginning of the upcoming year: January February March April May Full Year Number of cars to be produced: 820 310 690 350 430 7,000 Number of cars to be sold: 860 720 400 620 390 7,400 Expected selling price per car: $ 25,500 Other information about the production process is as follows: 37 Machine hours per unit $ 6,100 Direct material cost per unit 51 Direct labour hours per unit $ 25.00 Wage paid per direct labour hour $ 500,000 Per month salaries of plant management $ 434,000 Per month utilities of the production facility $ 4,480,000 Per month depreciation on the production facility Pre-determined manufacturing overhead is calculated prior to the year (do NOT round) and applied on the basis of machine hours. Other costs of the business are as follows: $ 980,000 Per month advertising costs $ 780,000 Per month executive salaries $ 1,320,000 Per month insurance expense $ 2,600 Commission per unit sold All sales are collected in cash. All expenses are paid in the month incurred, with the exception of depreciation and insurance. Insurance is paid only once each year. The yearly insurance payment is made in April. Required: In preparing a selling and administrative ('SG&A') budget, what would be the total budgeted SG&A expenses for the month of April?
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