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LUCKY_DIMON [66]
3 years ago
9

Schuepfer Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 3,100 units ar

e planned to be sold in March. The variable selling and administrative expense is $3.60 per unit. The budgeted fixed selling and administrative expense is $35,810 per month, which includes depreciation of $4,600 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the March selling and administrative expense budget should be:
Business
1 answer:
Ipatiy [6.2K]3 years ago
4 0

Answer:

Cash Disbursement for selling and administrative expense = $42,370

Explanation:

Provided information,

Units to be sold in the month of March = 3,100 units

Variable selling and administrative cost per unit = $3.60

Fixed selling and administrative cost  = $35,810

Depreciation included in fixed selling and administrative cost = $4,600

Cash fixed cost of selling and administrative cost = $35,810 - $4,600 = $31,210

Total cash cost of selling and administrative cost = Variable + Cash Fixed cost

Total variable cost = $3.60 \times 3,100 units = $11,160

<u>Total cash disbursement = $11,160 + $31,210 = $42,370</u>

<u></u>

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