Pearl, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $40,000.00 In January, $50,000.00 in February, and $60,000.00

in March. Variable and fixed selling and administrative expenses are asfollows:

Variable Expenses:Power cost (20%of sales)

Miscellaneous expenses:(5%of sales)

Fixed Expenses:

Salaries expense:

$8,000.00 per month

Rent expense:

$4,000.00 per month

Depreciation expense:

$1,000.00 per month

Power cost/fixed portion: $600.00 per month

Miscellaneous expenses/fixed portion: $1,000.00 per month

Calculate total budgeted selling and administrative expenses for the month of January.

A.

$27,100.00

B.

$10,000.00

C.

$29,600.00

D.

$24,600.00