Comma Co. makes and sells widgets. The company is in the process - 14730

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yousafbhutta

yousafbhutta

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  • From: Business,
  • Posted on: Wed 14 Nov, 2012
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Request Description

Comma Co. makes and sells widgets. The company is in the process of preparing its selling and administrative expense budget for the month. The following budget data are available:

Item Variable Cost Per Unit Sold Monthly Fixed Cost

 

Sales commissions $1 $10,000

 

Shipping $3

 

Advertising $4

 

Executive salaries $120,000

 

Depreciation on office equipment $4,000

 

Other $2 $6,000

 

Expenses are paid in the month incurred. If the company has budgeted to sell 80,000

 

widgets in October, how much is the total budgeted selling and administrative expenses

 

for October?

 

A) $940,000

 

B) $140,000

 

C) $930,000

 

D) $800,000

Solution Description

 

Comma Co. makes and sells widgets. The company is in the process of preparing its selling and administrative expense budget for the month. The following budget data are available:

Item Variable Cost Per Unit Sold Monthly Fixed Cost

&