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Dart, Inc. makes and sells umbrellas. 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 Shipping1.20 Advertising0.30 Executive salaries 40000 Depreciation on office equipment 8000 Other0.35 28000 Expenses are paid in the month incurred. If the company has budgeted to sell 8000 umbrellas in October, how much is the total budgeted variable selling and administrative expenses for October?

Respuesta :

Answer:

$19,600

Explanation:

The computation of the total budgeted variable selling and administrative expenses for October is shown below:

= Sales commission per unit × number of umbrellas sold + Shipping cost per unit × number of umbrellas sold + advertising expense per unit × number of umbrellas sold + other expenses per unit × number of umbrellas sold

= $0.60 × 8,000 umbrellas + $1.20 × 8,000 umbrellas + $0.30 × 8,000 umbrellas + $0.35 × 8,000 umbrellas

= $4,800 + $9,600 + $2,400 + $2,800

= $19,600

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