Duncan Company combines its operating expenses for budget purposes in a selling and administrative expense...
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Accounting
Duncan Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2014, the following data are available.
1.
Sales: 20,900 units quarter 1; 22,900 units quarter 2.
2.
Variable costs per dollar of sales: Sales commissions 5%, delivery expense 2%, and advertising 4%.
3.
Fixed costs per quarter: Sales salaries $10,300, office salaries $6,310, depreciation $4,390, insurance $1,950, utilities $830, and repairs expense $670.
4.
Unit selling price: $24.
Prepare a selling and administrative expense budget by quarters for the first 6 months of 2014. (List variable expenses before fixed expense.)
DUNCAN COMPANY Selling and Administrative Expense Budget For the Six Months Ending June 30, 2014 Quarter Six Months
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