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 $ 6,000 Shipping 1.20 Advertising 0.30 Executive salaries 40,000 Depreciation on office equipment 8,000 Other 0.35 28,000 Expenses are paid in the month incurred. If the company has budgeted to sell 8,000 umbrellas in October, how much is the total budgeted variable selling and administrative expenses for October?

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Dryomys Dryomys · Answer 1 · 2020-03-25T02:55:29+01:00

Answer:

$19,600

Explanation:

Given that,

Sales commission per unit = $0.60

Shipping cost per unit = $1.20

Advertising cost per unit = $0.30

Other = $0.35

Number of units budgeted to sell = 8,000

Budgeted Variable Selling & administrative expenses:

= Sales Commission + Shipping + Advertising + Other

= (8,000 × $0.60) + (8,000 × $1.20) + (8,000 × $0.30) + (8,000 × $0.35)

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

= $19,600

abiolataiwo2015 abiolataiwo2015 · Answer 2 · 2021-12-10T14:44:50+01:00

The total budgeted variable selling and administrative expenses for October is $19,600.

Using this formula

Budgeted variable selling and administrative expenses = (Sales commissions + Shipping + Advertising+ Other variable expense)×Budgeted to sell

Let plug in the formula

Budgeted variable selling and administrative expenses= ($0.60 per unit+$1.20 per unit+$0.30 per unit+$0.35 per unit) ×8,000 units

Budgeted variable selling and administrative expenses=$2.45 per unit×8,000 units

Budgeted variable selling and administrative expenses= $19,600

Inconclusion the total budgeted variable selling and administrative expenses for October is $19,600.

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