Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Year 1 selling expense budget for Zap Corporation is as follows: Budgeted sales $550,000 Selling costs: Delivery expenses $ 5,500 Commission expenses 11,000 Advertising

The Year 1 selling expense budget for Zap Corporation is as follows:

Budgeted sales

$550,000

Selling costs:
Delivery expenses

$ 5,500

Commission expenses

11,000

Advertising expenses

5,000

Office expenses

3,000

Miscellaneous expenses

6,950

Total

$ 31,450

Delivery and commission expenses vary proportionally with budgeted sales in dollars. Advertising and office expenses are fixed. Miscellaneous expenses include $2,000 of fixed costs. The rest varies with budgeted sales in dollars. The budgeted sales for Year 2 are $660,000. What will be the value of miscellaneous expenses in the Year 2 selling expense budget?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Diversity In Library Collections

Authors: Rosalind Washington, Sarah Voels

1st Edition

1440878749, 978-1440878749

More Books

Students also viewed these Accounting questions

Question

Understand the different approaches to job design. page 184

Answered: 1 week ago