The following budget information is available for the XYZ Company for the first quarter of 2011:

Sales ($16 per unit) $320,000

Freight out $.25 per unit sold

Depreciation on Administrative Equipment $10,000

CSales & Admin. Salaries $40,000 +2% of sales

Advertising $12,000

Depreciation on Manufacturing Equipment $15,000

Lease on Sales Building $45,000

Miscellaneous Selling Expenses $5,000

All operating expenses are paid in cash in the month incurred.

If XYZ expects to sell 20,000 inventory units in the first quarter, what would be the amount of the total budgeted selling and administrative expenses for the first quarter of 2011?

a. $123,400

b. $138,400

c. $113,400

d. $293,400

Based on first quarter sales of 20,000 units, the amount of XYZ