The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year

Accounting Nov 30, 2020

The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available: Variable Cost Per Unit Sold Monthly Fixed Cost Sales commissions $0.60 $ 6000 Shipping 1.20 Advertising 0.30 Executive salaries 39000 Depreciation on office equipment 8000 Other 0.35 27000 Expenses are paid in the month incurred. If the company has budgeted to sell 6500 umbrellas in October, how much is the total budgeted variable selling and administrative expenses for October?

A.)$21,075

B.)$13,650

C.)$15,925

D.)$95,925

Expert Solution

ParticularsAmount (in $ )Sales Commission
( 6,500 x $ 0.60 )$ 3,900Shipping
( 6,500 x $ 1.20 )$ 7,800Advertising
( 6,500 x $ 0.30 )$ 1,950Other
( 6,500 x $ 0.35 )$ 2,275Budgeted Variable Selling and Administrative expenses$ 15,925Option (C ) is Correct

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