Warshaw Company is preparing the June Budget.

The June budget includes the following data:

Sales $100,000

Purchases of Merchandise $95,000

Depreciation $2427

Insurance $11403

Payroll expenses $5427 a month plus 2% of sales

Administrative office expenses incurred to order purchases are budgeted at 7% of purchases of merchandise only

Purchase of equipment $3601

Research and Development 8% of sales

What is total operating expense for June?

(hint: not everything listed is an operating expense)