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.)

SHEP COMPANY Selling and Administrative Expense Budget For the Quarter Ended March 31, 2016