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Shep Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first quarter of 2016, the following data
Shep Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first quarter of 2016, the following data are developed:
1. | Sales: 20,000 units; unit selling price: | $30 | ||||
2. | Variable costs per dollar of sales: | |||||
Sales commissions | 6% | |||||
Delivery expense | 2% | |||||
Advertising | 4% | |||||
3. | Fixed costs per quarter: | |||||
Sales salaries | $24,000 | |||||
Office salaries | 19,000 | |||||
Depreciation | 6,000 | |||||
Insurance | 2,000 | |||||
Utilities | 1,000 |
Prepare a selling and administrative expense budget for the first quarter of 2016. (List variable costs before fixed costs.)
please include all answers. thank you
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