Answer:
Selling and Administrative Expense budget for first quarter
Details Jan Feb Mar total
Depreciation $6,100 $6,100 $6,100 $18,300
Office staff Salaries $15,250 $15,250 $15,250 $45,750
Advertising $610 $610 $610 $1,830
Executive Salaries $6,100 $6,100 $6,100 $18,300
miscellaneous $305 $305 $305 $915
Commission (sales*3%) $3,294 $6,423 $5,765 $15,482
Bad Debt Expense $2,196 $4,282 $3,843 $10,321
(sales * 2%)
Total $33,855 $39,070 $37,973 $110,898
Sales = bricks * selling price of $9
Explanation:
The question is incomplete. below is a complete questions although the 4% commission is 3% and the 3% bad debt expense is 2% on this question.
Question: Crane & Hill Fabricators produces commemorative bricks that organizations use for fundraising...
Crane & Hill Fabricators produces commemorative bricks that organizations use for fundraising projects. Aaron Crane, the company's vice president of marketing, has prepared the following sales forecast for the first six months of the coming year. The company plans to sell the bricks for $9 each.
January
February
March
April
May
June
12,200
23,790
21,350
29,000
23,000
20,000
Crane & Hill Fabricators' marketing department has identified the following monthly expenses that will be needed to support the company's sales and administrative functions.
Depreciation
$6,100
Sales staff salaries
$15,250
Advertising
$610
Executive salaries
$6,100
Miscellaneous
$305
In addition to these monthly expenses, the company will pay a commission to its salespeople equal to 3% of the sales revenue from each brick sold. The company expects bad debt expense to be 2% of sales revenue.
Prepare Crane & Hill's selling and administrative expense budget for the first quarter of the coming year.
