Kapital, 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 selling and administrative expenses are as follows:

Variable Expenses: Power cost (20% of sales)
Miscellaneous expenses: (10% of sales)
Fixed Expenses: Salary expense: $6,000 per month
Salaries expense: $5,000 per month
Depreciation expense: $1,400 per month
Power cost/fixed portion: $600 per month
Miscellaneous expenses/fixed portion: $1,200 per month

Calculate total selling and administrative expenses for the month of January.
A) $27,700
B) $33,700
C) $13,500
D) $30,700

A .A) Calculation of total selling and administrative expenses for the month of January: