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Flexible Budget for Selling and Administrative Expenses for a Service Company Morningside Technologies Inc. uses flexible budgets...

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Accounting

Flexible Budget for Selling and Administrative Expenses for aService Company

Morningside Technologies Inc. uses flexible budgets that arebased on the following data:

Sales commissions9% of sales
Advertising expense17% 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 expense4,400 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$$$

Answer & Explanation Solved by verified expert
4.0 Ratings (640 Votes)

Morningside Technologies Inc.
Flexible Selling and Administrative Expenses Budget
For the Month Ending April 30
Total sales $1,10,000.00 $1,40,000.00 $1,65,000.00
Variable cost:
Sales commissions $     9,900.00 $   12,600.00 $   14,850.00
Advertising expense $   18,700.00 $   23,800.00 $   28,050.00
Miscellaneous administrative expense $     2,200.00 $     2,800.00 $     3,300.00
Customer support expenses $     3,300.00 $     4,200.00 $     4,950.00
Total variable cost $   34,100.00 $   43,400.00 $   51,150.00
Fixed cost:
Miscellaneous administrative expense $     1,750.00 $     1,750.00 $     1,750.00
Office salaries expense $   17,000.00 $   17,000.00 $   17,000.00
Customer support expenses $     2,500.00 $     2,500.00 $     2,500.00
Research and development expense $     4,400.00 $     4,400.00 $     4,400.00
Total fixed cost $   25,650.00 $   25,650.00 $   25,650.00
Total selling and administrative expenses $   59,750.00 $   69,050.00 $   76,800.00

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