Answer: A. $32,200
Explanation:
The following details are are applicable to the month of January ;
Fixed expenses:
Rent = $5,000
Salary = $10,000
depreciation = $1,200
Fixed Miscellaneous = $1,200
Fixed power = $800
Total fixed expenses = $5,000 + $10,000 + $1,200 + $1,200 + $800 = $18,200
Forecasted January sale = $40,000
Variable expenses:
Power = 30% of sales = 0.3 × $40,000 = $12,000
Miscellaneous = 5% of sales = 0.05 × $40,000 = $2000
Total variable expenses = $12,000 + $2000 = $14,000
Therefore, total selling and administrative expenses for january is given by;
Selling expenses(total variable expenses) + administrative expenses( total fixed expenses)
= $18,200 + $14,000 = $32,200
