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Zelia, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $45,000 in January, $55,000 in
Zelia, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $45,000 in January, $55,000 in February, and $65,000 in March. Variable and fixed expenses are as follows: Variable Expenses: Power cost (40% of sales) Miscellaneous expenses: (10% of sales) Fixed Expenses: Salaries expense: $8,000 per month Rent expense: $5,000 per month Depreciation expense: $1,200 per month Power cost/fixed portion: $500 per month Miscellaneous expenses/fixed portion: $1,000 per month Using the information above, calculate the amount of budgeted selling and administrative expenses for the month of February. OA. $38,200 B. $27,500 OC. $43,200 OD. $48,200
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