Question

The Puyer Corporation makes and sells only one product called a Deb. The company is in the process of preparing its Selling and Administrative Expense Budget for next year. The following budget data are available: Monthly Fixed Cost Variable Cost Per Deb Sold Sales commissions $ 1.01 Shipping $ 1.51 Advertising $ 51,100 $ 0.31 Executive salaries $ 61,100 Depreciation on office equipment $ 21,100 Other $ 41,100 All of these expenses (except depreciation) are paid in cash in the month they are incurred. If the company has budgeted to sell 16,100 Debs in February, then the total budgeted fixed selling and administrative expenses for February is: Multiple Choice

Answer 1

Total= $159,552



Giving the following information:
The company has budgeted to sell 15,600 Debs in February.
Sales commissions $ 0.96*15,600= 14,976
Shipping $ 1.46 *15,600= 22,776
Executive salaries $ 60,600
Depreciation on office equipment $ 20,600
Other $ 40,600
Total= $159,552