From the following details, provided by a merchandising company, prepare the selling and administrative expenses budget for the first quarter of the next year
Rent Expense $8,000 per month
Depreciation Expense $ 3,500 per month
Insurance Expense $1,250 per month
Miscellaneous Expense 2% of sales, paid as incurred
Commissions Expense 10% of sales
Salaries Expense $7,000 per month
Jan Feb March
Sales $50,000 $65,000 $80,000
What will be an ideal response
Selling and Administrative Expenses Budget
For First Quarter
Jan Feb March
Variable Expenses:
Commissions Expense (10% of sales) $5,000 $6,500 $8,0000
Miscellaneous Expense (2% of sales) $1,000 $1,300 $1,600
Total Variable Expenses $6000 $7,800 $9,600
Fixed Expense:
Salaries Expenses $7,000 $7,000 $7,000
Rent Expenseses 8,000 8,000 8,000
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