Question

Bonkowski Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: The estimated selling and administrative expense for February is closest to:

Answer 1

Answer:

$107,200

Explanation:

Calculation for the estimated selling and administrative expense for February

Budgeted unit sales 12,000

× Variable selling and administrative expense per unit $3.10 per unit

=Total variable selling and administrative expense $37,200

(12,000×$3.10 per unit)

Add Fixed selling and administrative expenses $70,000 per month

Estimated selling and administrative expense $107,200

($70,000+$37,200)

Therefore The estimated selling and administrative expense for February is closest to:$107,200