Answer:
Total administrative expense= $317,000
Explanation:
Giving the following information:
The budgeted unit sales:
1st Quarter= 15,000
2nd Quarter= 16,000
3rd Quarter= 14,000
4th Quarter= 13,000
-Variable selling and administrative expense per unit is $2.50.
-Fixed selling and administrative expenses include advertising expenses of $8,000 per quarter
-Executive salaries of $35,000 per quarter
1st Q:
Variable= 2.5*15,000= $37,500
Fixed= 8,000 + 35,000= $43,000
2nd Q:
Variable= 2.5*16,000= $40,000
Fixed= 8,000 + 35,000= $43,000
3rd Q:
Variable= 2.5*14,000= $35,000
Fixed= 8,000 + 35,000= $43,000
4th Q:
Variable= 2.5*13,000= $32,500
Fixed= 8,000 + 35,000= $43,000
Total administrative expense= $317,000
