Short-term Budgeting

The International Company makes and sells only one product, Product SW. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available: Variable Cost Per Unit Sold Monthly Fixed Cost Sales commissions P0.70 Shipping 1.10 Advertising 0.20 P14,000 Executive Salaries 34,000 Depreciation on office equipment 11,000 Other 0.25 19,000 All expenses other than depreciation are said in cash in the month they are incurred. If the company has budgeted to sell 25,000 units of Product SW in July, then the total budgeted selling and administrative expenses for July will be: A. P56,250. G. P134,250. B. P78,000. D. P123,250.* 8. If the company has budgeted to sell 20,000 units of Product SW in October then the total budgeted variable selling and administrative expenses for October will be: A. P45,000. C. P56,250. B P40,000. D. P78,000.* 9. If the budgeted cash disbursements for selling and administrative expenses for November total P123,250, then how many units of Product SW does the company plan to sell in November (rounded to the nearest whole unit)? A. 33,444 units C. 22,952 units. B. 25,000 units. D. 20,111 units.* 10. If the company has budgeted to sell 24,000 units of Product SW in September, then the total budgeted fixed selling and administrative expenses for September would be: A. P54,000. C. P67,000 B. P48,000. D. P78,000.*