Flexible Budget for Selling and Administrative Expenses for a Service Company Morningside Technologies Inc. uses flexible budgets that are based on the following data: Sales commissions 8% of sales Advertising expense 16% of sales Miscellaneous administrative expense $1,900 per month plus 2% of sales office salaries expense $18,000 per month Customer support expenses 12,700 plus 3% of sales Research and development expense 4,800 per month Prepare a flexible selling and administrative expenses budget for April for sales volumes of $120,000, $150,000, and $180,000. Enter all amounts as positive numbers. Morningside Technologies Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending April 30 Total sales Variable cost Sales commissions Advertising expense Miscellaneous administrati $120,000 $150,000 $100,000 000 000 8
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.
![Flexible Budget for Selling and Administrative Expenses for a Service Company
Morningside Technologies Inc. uses flexible budgets that are based on the following data:
Sales commissions
8% of sales
Advertising expense
16% of sales
Miscellaneous administrative expense
$1,900 per month plus 2% of sales
Office salaries expense
$18,000 per month
Customer support expenses
Research and development expense
Prepare a flexible selling and administrative expenses budget for April for sales volumes of $120,000, $150,000, and $180,000. Enter all amounts as positive numbers.
Morningside Technologies Inc.
Flexible Selling and Administrative Expenses Budget
For the Month Ending April 30
Total sales
Variable cost:
Sales commissions
Advertising expense
Miscellaneous administrative expense
Customer support expenses
Total variable cost
$2,700 plus 3% of sales
4,800 per month
Fixed cost:
Miscellaneous administrative expense
Office salaries expense
Customer support expenses
Research and development expense
Total fixed cost
Total selling and administrative expenses
$120,000 $150,000 $100,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F77eb8d3c-55b3-4450-9512-5fb22f682ceb%2F086657df-a179-44b0-8b0b-cb3246fdc626%2Fy4frv3_processed.jpeg&w=3840&q=75)
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