Flexible Budget for Selling and Administrative Expenses for a Service Company Cloud Productivity Inc. uses...
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Accounting
Flexible Budget for Selling and Administrative Expenses for a Service Company
Cloud Productivity Inc. uses flexible budgets that are based on the following data:
Sales commissions
15% of sales
Advertising expense
18% of sales
Miscellaneous administrative expense
$7,000 per month plus 12% of sales
Office salaries expense
$29,000 per month
Customer support expenses
$13,000 per month plus 20% of sales
Research and development expense
$32,000 per month
Prepare a flexible selling and administrative expenses budget for March for sales volumes of $400,000, $500,000, and $600,000. (Use Exhibit 5 as a model.)
Cloud Productivity Inc.
Flexible Selling and Administrative Expenses Budget
For the Month Ending March 31
Total sales
$400000
$500000
$600000
Variable cost:
$
$
$
Total variable cost
$
$
$
Fixed cost:
$
$
$
Total fixed cost
$
$
$
Total selling and administrative expenses
$
$
$
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