Question
Warshaw Company budgets payroll at $3,400 per month plus a percentage of monthly sales. The June operating expenses budget includes total payroll of $9,800 with
Warshaw Company budgets payroll at
$3,400
per month plus a percentage of monthly sales. The June operating expenses budget includes total payroll of
$9,800
with budgeted sales of
$160,000.
Sales for July are budgeted at
$140,000
while purchases of inventory for July are budgeted at
$920,000.
Depreciation and insurance for July are estimated at
$800
and
$800?,
respectively. Office and administrative expenses related to purchasing inventory are budgeted at
10?%
of purchases for the month. The purchase of
$2,400
in equipment and
$1,100
in furniture is expected in July.If the percentage of monthly sales used in budgeting payroll increases
25?%,
what would the total payroll budgeted for July? be?
A.
$ 7 comma 000$7,000
B.
$ 10 comma 400$10,400
C.
$9,000
D.
$ 5600
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Fundamental accounting principle
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
21st edition
1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587
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