Static Budget v5. Flexible Budget The production supervisor of the Painting Department for Whitley Company agreed to the following monthly sta budget for the upcoming year: WHITLEY COMPANY Painting Department Monthly Production Bud get Wages $523,000 Utilities 34,000 Depreciation 57,000 Total $514,005 ) The actual amount spent and the actual units produced in the first three months in the Painting Department were as follows: Amount Spent Units Produced January $580,000 120,000 February 553,000 109,000 March 527,000 90,000 The Painting Department supervisor has been very pleased with this performance, since actual expe ures have been less than the monthly budget. However, the plant manager believes that the budget should not remain fixed for every month but should "ex" or adjust to the volume of work that is produced in the Painting Department. Additional budget information for the Painting Department is as follows: Wages per hour $20.00 Utility cost per direct labor hour 51.30 Direct labor hours per unit 0.20 hrs. Planned unit production 130,000 units Flexible Budget for Selling and Administrative Expenses Fuller Enterprises uses flexible budgets that are based on the following data: Sales commissions 8% of sales Advertising expense 18% of sales Customer support expense $1,800 plus 4% of sales Office salaries expense $12,000 per month Miscellaneous administrative expense $3,000 plus 3% of sales Research and development expense $1,300 per month Prepare a flexible selling and administrative expenses budget for July for sales volumes of $80,000, $100,000, and $120,000. (Use Exhibit 5 as a model.) Enter all amounts as positive numbers. FULLER ENTERPRISES Flexible Selling and Administrative Expenses Budget For the Month Ending July 31 Total sales $80,000 $100,000 $120,000 Variable cost: Sales commissions Advertising expense Customer support expense Miscellaneous administrative expense Total variable cost Fixed cost: Customer support expense Office salaries expense Miscellaneous administrative expense Research and development expense 10000 100000 Total fixed cost Total selling and administrative expenses