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Johnson Service Company uses flexible budgets that are based on the following data:
Sales Commissions 14% of sales
Advertising Expense 15% of sales
Miscellaneous Administrative
Expense $7,000 per month plus 8% of sales
Office Salaries Expense $28,000 per moth
$12,000 per month plus 20% of sales commissions
Customer Support Expenses
R&D Expenses $30,000 per month
| Prepare a flexible selling and administrative expenses budget for April for sales volumes of $400,000, $500,000, and $700,000 | |
| | | |
| | | Johnson Service Company |
| | | Selling and Administrative Expense Budget |
| | | For the Month of April 2019 |
| | | Fill in the blank spaces below: | | | |
| | | Sales | $400,000 | $500,000 | $700,000 |
| | | | | | |
| | | Selling Expenses: | | | |
| | | Sales Commissions | | | |
| | | Advertising Expense | | | |
| | | Total Selling Expenses | | | |
| | | | | | |
| | | Administrative Expenses: | | | |
| | | Misc. Administrative Expense | | | |
| | | Office Salaries Expense | | | |
| | | Customer support Expenses | | | |
| | | Research and Development Expenses | | | |
| | | Total Administrative Expenses | | | |
| | | | | | |
| | | Total Selling and Administrative Expenses | | | |
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