prepare operational budgets

Q2: Background information for Fred's Furniture Fred's Furniture forecasts the following expenses for October. MR FER Sales Wages Bad Debts Delivery Charges Depreciation Shop Fittings Depreciation Motor Vehicle Electricity Interest on Loan 5,000 Advertising 500 Sales Commissions 950 Office Wages 600 Rent 500 Stationery 280 Telephone 1,100 Discount Allowed 6% of Sales 4% of Sales 2400 2,000 300 800 1.000 Sales for the month are estimated at $52,000. Q2.1 In your own words explain what is included in an Expense budget, include how MR FER expenses are identified and categorised. (use 50-100 words in answer). Q2.2: Prepare an Expenses Budget for Fred's Furniture for October. MR FER Calculations Sales Sales Commissions Advertising 52000 3120 3120 sale 52000 X 6%. =3120 Advertising 52000X6%23120 Expenses Budget for October Marketing $ Sales Wages 5000 Sales Commissions 3120 Depreciation - Motor Vehicle 500 Advertising 3120 Delivery 950 112690 Administration Telephone 800 Electricity 280 Dep Shop Fit Stationery 300 Rent 2900 Office Wages 2400 6380 Financial Discount Allowed 1000 Interest Pald on Loan Bad Debts 5oo. 2600 600 1100