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Troyanec [42]
3 years ago
13

The budgeted unit sales of Weller Company for the upcoming fiscal year are provided below:

Business
1 answer:
Sati [7]3 years ago
7 0

Answer:

Weller Company

Selling and Administrative Expense Budget for the upcoming year:

First Quarter

Variable = $302,400 (($2.80 x (29,000 + 30,000 +22,000 + 27,000))

Fixed:

Advertising = $56,000 ($14,000 x 4)

Executive Salaries = $188,000 ($47,000 x 4)

Depreciation = $112,000 ($28,000 x 4)

Insurance = $10,000 ($5,000 x 2)

Property Taxes = $7,800

Total = $672,200

Explanation:

A budget is a projection into the future about the activities of an entity.  It is used for planning and decision making, especially when the budget is compared with the actual performances to obtain variances.

The total variable for the year is obtained by adding up the budgeted unit sales for the quarters and multiplying by the variable expense per unit.

The fixed costs total $373,800.  The Advertising, Executive Salaries, and Depreciation costs would be incurred each quarter.  So their sums were obtained by multiplying a quarter's total cost by 4.

Insurance cost would be incurred only in two quarters and Property Taxes  in one quarter only.

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