RED ROSE COMPANY

Selling and Administrative Expense Budget

For the Six Months Ending June 30, 2023

Budgeted sales in units Budgeted Sales in dollars Variable S&A Exp.(15 per cent of sales)........... Fixed S&A Exp.................................................. Total S&A Exp...................................................

68,000 4,420,000 $663,000 250,000 $913,000

1.) Prepare a Flexible Selling and Administrative Expenses Budget for the first six-month of 2023 with increments of 4,000 sales units for the expected range of 64,000 and 72,000 units.

2.) Prepare a Flexible Selling and Administrative Expenses Budget Report for the first six-month of 2023.

The actual sales amount is 72,000 units, the actual selling price is $64 and the actual information of S&A Expenses:

Variable: $680,000

Fixed: $265,000