Weller Company's budgeted unit sales for next year are provided below: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 30,000 31,000 28,000 23,000 Budgeted unit sales The company's variable selling and administrative expense per unit is $2.90. Fixed selling and administrative expenses include advertising expenses of $15,000 per quarter, executive salaries of $50.000 per quarter, and depreciation of $29,000 per quarter. In addition, the company will make insurance payments of $4,000 in the first quarter and $4,000 in the third quarter. Finally, property taxes of $9,000 will be paid in the second quarter. Required: Prepare the company's selling and administrative expense budget for next year. Note: Round "Per Unit" answers to 2 decimal places.
Weller Company's budgeted unit sales for next year are provided below: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 30,000 31,000 28,000 23,000 Budgeted unit sales The company's variable selling and administrative expense per unit is $2.90. Fixed selling and administrative expenses include advertising expenses of $15,000 per quarter, executive salaries of $50.000 per quarter, and depreciation of $29,000 per quarter. In addition, the company will make insurance payments of $4,000 in the first quarter and $4,000 in the third quarter. Finally, property taxes of $9,000 will be paid in the second quarter. Required: Prepare the company's selling and administrative expense budget for next year. Note: Round "Per Unit" answers to 2 decimal places.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 34BEA: Performance Report Based on Budgeted and Actual Levels of Production Bowling Company budgeted the...
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
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Transcribed Image Text:Weller Company's budgeted unit sales for next year are provided below:
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
30,000
31,000
25,000
23,000
Budgeted unit sales
The company's variable selling and administrative expense per unit is $2.90. Fixed selling and administrative expenses include
advertising expenses of $15,000 per quarter, executive salaries of $50,000 per quarter, and depreciation of $29,000 per quarter. In
addition, the company will make insurance payments of $4,000 in the first quarter and $4,000 in the third quarter. Finally, property
taxes of $9,000 will be paid in the second quarter.
Required:
Prepare the company's selling and administrative expense budget for next year.
Note: Round "Per Unit" answers to 2 decimal places.
Transcribed Image Text:Required:
Prepare the company's selling and administrative expense budget for next year.
Note: Round "Per Unit" answers to 2 decimal places.
Budgeted unit sales
Variable selling and administrative expense per unit
Variable selling and administrative expense
Fixed selling and administrative expenses
Advertising
Executive salaries
Insurance
Property taxes
Depreciation
Total fixed selling and administr
ve
Total selling and administrative expenses
enses
Weller Company
Selling and Administrative Expense Budget
1st Quatter
2nd Quarter
Less Depreciation
Cash disbursements for selling and administrative expenses
30,000
31,000
3rd Quarter
23,000
4th Quarter
25,000
Year
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