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Morganton Company makes one product and it provided the following information to help prepare the master budget for its first four months of operations: The

Morganton Company makes one product and it provided the following information to help prepare the master budget for its first four months of operations:

  1. The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 9,900, 30,000, 32,000, and 33,000 units, respectively. All sales are on credit.
  2. 40% of credit sales are collected in the month of the sale and 60% in the following month.
  3. The ending finished goods inventory equals 30% of the following months unit sales.
  4. The ending raw materials inventory equals 20% of the following months raw materials production needs. Each unit of finished goods requires 4 pounds of raw materials. The raw materials cost $2.50 per pound.
  5. 40% of raw materials purchases are paid for in the month of purchase and 60% in the following month.
  6. The direct labour wage rate is $12 per hour. Each unit of finished goods requires two direct labour-hours.
  7. The variable selling and administrative expense per unit sold is $1.90. The fixed selling and administrative expense per month is $69,000.

Required:

What is the estimated total selling and administrative expense for July?

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