Shep Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first quarter of $2019,$ the following data are developed:

Sales: $20,000$ units; unit selling price: $$25$

Variable costs per dollar of sales:

Sales commissions $6\%$

Delivery expense $2\%$

Advertising $4\%$

Fixed costs per quarter:

Sales salaries $$30,000$

Office salaries $18,000$

Depreciation $8,000$

Insurance $3,000$

Utilities $1,100$

Instructions

Prepare a selling and administrative expense budget for the first quarter of $2019.$

SHEP COMPANY

Selling and Administrative Expense Budget

For the Quarter Ended March $31,2019$

Variable expenses

Sales commissions

Delivery expense

Advertising

Total variable

Fixed expenses

Sales salaries

Office salaries

Depreciation

Insurance

Utilities

Total fixed

Total selling and administrative expenses