A manufacturing company's budgeted income statement includes the following data: Data extracted from budgeted income statement Mar Apr May Jun Sales revenue $130,000 $80,000 $130,000 $120,000 Commission expense (15% of sales) 19,500 12,000 19,500 18,000 Salaries expense 33,000 33,000 33,000 33,000 Miscellaneous expense—5% of sales 6500 4000 6500 6000 Rent expense 3600 3600 3600 3600 Utilities expense 2300 2300 2300 2300 Insurance expense 2600 2600 2600 2600 Depreciation expense 4200 4200 4200 4200The budget assumes that 60% of commission expenses are paid in the month they are incurred and the remaining 40% are paid one month later. In addition, 50% of salaries expenses are paid in the same month, and the remaining 50% are paid one month later. Miscellaneous expenses, rent expense, and utilities expenses are assumed to be paid in the same month in which they are incurred. Insurance has been paid in advance for the year on January 1. Calculate total budgeted cash payments for selling and administrative expenses for the month of April. Group of answer choices $57,900 $64,700 $60,500 $52,000
A manufacturing company's budgeted income statement includes the following data: Data extracted from budgeted income statement Mar Apr May Jun Sales revenue $130,000 $80,000 $130,000 $120,000 Commission expense (15% of sales) 19,500 12,000 19,500 18,000 Salaries expense 33,000 33,000 33,000 33,000 Miscellaneous expense—5% of sales 6500 4000 6500 6000 Rent expense 3600 3600 3600 3600 Utilities expense 2300 2300 2300 2300 Insurance expense 2600 2600 2600 2600 Depreciation expense 4200 4200 4200 4200The budget assumes that 60% of commission expenses are paid in the month they are incurred and the remaining 40% are paid one month later. In addition, 50% of salaries expenses are paid in the same month, and the remaining 50% are paid one month later. Miscellaneous expenses, rent expense, and utilities expenses are assumed to be paid in the same month in which they are incurred. Insurance has been paid in advance for the year on January 1. Calculate total budgeted cash payments for selling and administrative expenses for the month of April. Group of answer choices $57,900 $64,700 $60,500 $52,000
Chapter4: Financial Planning And Forecasting
Section: Chapter Questions
Problem 5P
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
100%
A manufacturing company's
| Data extracted from budgeted income statement | Mar | Apr | May | Jun |
| Sales revenue | $130,000 | $80,000 | $130,000 | $120,000 |
| Commission expense (15% of sales) | 19,500 | 12,000 | 19,500 | 18,000 |
| Salaries expense | 33,000 | 33,000 | 33,000 | 33,000 |
| Miscellaneous expense—5% of sales | 6500 | 4000 | 6500 | 6000 |
| Rent expense | 3600 | 3600 | 3600 | 3600 |
| Utilities expense | 2300 | 2300 | 2300 | 2300 |
| Insurance expense | 2600 | 2600 | 2600 | 2600 |
| 4200 | 4200 | 4200 | 4200 |
Calculate total budgeted cash payments for selling and administrative expenses for the month of April.
Group of answer choices
$57,900
$64,700
$60,500
$52,000
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