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Wala Inc. bases its selling and administrative expense budget on the number of units sold. The variable selling and administrative expense is $4.00 per unit. The budgeted fixed selling and administrative expense is $30,140 per month, which includes depreciation of $3,410. The remainder of the fixed selling and administrative expense represents current cash flows. The sales budget shows 4,100 units are planned to be sold in July.Required:


Prepare the selling and administrative expense budget for July.

Respuesta :

abiolataiwo2015

Answer:

$43,130

Explanation:

Wala Inc.

Cash disbursements = (Variable selling and administrative cost x Number of direct-labor hours) + (Fixed manufacturing overhead less depreciation)

= (4,100 x $4.00) + ($30,140 - $3,410)

=$16,400+$26,730

=$43,130

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