Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please include full answer, not half the spreadsheet Fexible Badget for Selling and Administrative Expenses for a Service Company Digital Solutions Inc unes flexible budgets
please include full answer, not half the spreadsheet Fexible Badget for Selling and Administrative Expenses for a Service Company Digital Solutions Inc unes flexible budgets that are based on the following data: Sales commissions 141 of sales Advertising expense Miscellaneous administrative expense Office salaries expense Customer support expenses Research and development expense 18% of sales $8,000 per month plus 12% of sales $28,000 per month $14,000 per month plus 20% of sales $30,000 per month Prepare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, 500,000, and $600,000. (Use Exhibit 5 as a model.) Digital Solutions Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending October 31 Total sales $400,000 $500,000 $600,000 Variable cost: Sales commissions 56,000 70,000 14.000 Advertising expense 80,000 X 100,000 X Miscellaneous administrative expense 48.000 0 100 / 72,000 Customer support expenses 30.000 100,000 120,000 120,000 X 264.000 X 330,000 X 5 396,000 X Total variable cost Fixed cost Miscellaneous administrative expense Office salaries expense 3,000 3.000 8.000 29,000 X 29.000 X Customer support expenses 29,000 X 13,000 X 13,000 X Reseach and develomante 13,000 X Prepare a flexible selling and administrative expenses budget for October for sales volumes of s400,000, $500,000, and $600,000. (Use Exhibits as a model. Digital Solutions Inc Flexible Selling and Administrative Expenses Budget For the Month Ending October 31 5400,000 $600,000 Total sales Variable cost $500,000 56,000 700,000 84,000 30,000 X Sales commissions Advertising expense Miscellaneous administrative expense Customer support expenses 100,000 X 120,000 x 45,000 V 60,000 72,000 80.000 100,000 120,000 264,000 X 330,000 X 396,000 X 11.000 0,000 Total variable cost Fixed cost Miscellaneous administrative expense Office salaries expense Customer support expenses Research and development expense B.000 29,000 X 29,000 X 29.000 X 13,000 X 13,000 X 13.000 X 30.000 0, 0, 10.000 Total fue cont 110,000 30,000 30.000 Total selling and administrative expenses 34,000 X 410,000 X 476,000 X
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started