Flexible Budget for Selling and Administrative Expenses for aService Company
Morningside Technologies Inc. uses flexible budgets that arebased on the following data:
| Sales commissions | 9% of sales |
| Advertising expense | 17% of sales |
| Miscellaneous administrative expense | $1,750 per month plus 2% of sales |
| Office salaries expense | $17,000 per month |
| Customer support expenses | $2,500 plus 3% of sales |
| Research and development expense | 4,400 per month |
Prepare a flexible selling and administrative expenses budgetfor April for sales volumes of $110,000, $140,000, and $165,000.Enter all amounts as positive numbers.
| Morningside Technologies Inc. |
| Flexible Selling and Administrative ExpensesBudget |
| For the Month Ending April 30 |
| Total sales | $110,000 | $140,000 | $165,000 |
| Variable cost: | | | |
| Sales commissions | $ | $ | $ |
| Advertising expense | | | |
| Miscellaneous administrative expense | | | |
| Customer support expenses | | | |
| Total variable cost | $ | $ | $ |
| Fixed cost: | | | |
| Miscellaneous administrative expense | $ | $ | $ |
| Office salaries expense | | | |
| Customer support expenses | | | |
| Research and development expense | | | |
| Total fixed cost | $ | $ | $ |
| Total selling and administrative expenses | $ | $ | $ |
