Question
Zelia, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $40,000 in January,$50,000 in February, and
Zelia, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $40,000 in January,$50,000 in February, and $60,000 in March. Variable and fixed expenses are as follows:
Variable Expenses:
Power cost (40% of sales)
Miscellaneous expenses: (5% of sales)
Fixed Expenses:
Salaries expense:$8,000 per month
Rent expense:$4,000 per month
Depreciation expense:$1,000 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.
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