Question

Miller Co. classifies its selling and administrative expense budget into variable and fixed components. Variable expenses are expected to be $13,400 in the first quarter, and $3,900 increments are expected in the remaining quarters of 2017. Fixed expenses are expected to be $21,300 in each quarter. What is the total amount to be budgeted for selling and administrative expenses for quarter 2?

Answer 1

Answer:

Budgeted selling and administrative expense= $38,600

Explanation:

Giving the following information:

Variable expenses are expected to be $13,400 in the first quarter, and $3,900 increments are expected in the remaining quarters of 2017. Fixed expenses are expected to be $21,300 in each quarter.

We need to determine the budgeted selling and administrative expense for the second quarter:

Budgeted selling and administrative expense= (13,400 + 3,900) + 21,300

Budgeted selling and administrative expense= $38,600