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zhannawk [14.2K]
3 years ago
13

Lunderville Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 3,200 units

are planned to be sold in December. The variable selling and administrative expense is $3.10 per unit. The budgeted fixed selling and administrative expense is $60,800 per month, which includes depreciation of $6,720 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 December selling and administrative expense budget should be:_____________
Business
1 answer:
Mila [183]3 years ago
4 0

Answer:

$64,000

Explanation:

The calculation of the cash disbursements for selling and administrative expenses on the December selling and administrative expense budget is given below;

= Variable Selling & Administrative Expenses + Fixed Seliing & Administrative Expenses - Depreciation

= 3,200 units × $3.10 + $60,800 - $6,720

= $64,000

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