Flexible Budget for Selling and Administrative Expenses for a Service companyMorningside Technologies Inc. uses flexible budgets that are based on the following data:Sales commissions15% of salesAdvertising expense12% of salesMiscellaneous administrative expense$8,000 per month plus 10% of salesOffice salaries expense$32,000 per monthCustomer support expenses$14,000 per month plus 18% of salesResearch and development expense$35,000 per monthPrepare a flexible selling and administrative expenses budget for April for sales volumes of $400,000, $500,000, and $600,000.MORNINGSIDE TECHNOLOGIES INC.Flexible Selling and Administrative Expenses BudgetFor the Month Ending April 30Total sales$400,000 $500,000 $600,000Variable cost:Sales commissionsAdvertising expenseMiscellaneous administrative expenseCustomer support expensesTotal variable costFixed cost:Miscellaneous administrative expenseOffice salaries expenseCustomer support expensesResearch and development expenseTotal fixed costTotal selling and administrative expenses%24%24 Schedule of Cash Collections of Accounts ReceivableFurry Friends Supplies Inc., a pet wholesale supplier, was organized on May 1. Projected sales for each of the first three months of operations are as follows:May$156,000June175,000July180,000All sales are on account. Seventy percent of sales are expected to be collected in the month of the sale, 25% in the month following the sale, and the remainder in the second month following thesale.Prepare a schedule indicating cash collections from sales for May, June, and July. Enter all amounts as positive numbers.Furry Friends Supplies Inc.Schedule of Collections from SalesFor the Three Months Ending July 31MayJuneJulyMay sales on account:Collected in MayCollected in JuneCollected in JulyJune sales on account:Collected in JuneCollected in JulyJuly sales on account:Collected in JulyTotal cash collected%2400

A flexible budget is that budget which includes all the flexibility and change in the output. In…

Flexible Budget for Selling and Administrative Expenses for a Service company Morningside Technologies Inc. uses flexible budgets that are based on the following data: 15% of sales Sales commissions Advertising expense 12% of sales Miscellaneous administrative expense $8,000 per month plus 10% of sales Office salaries expense $32,000 per month Customer support expenses $14,000 per month plus 18% of sales Research and development expense $35,000 per month Prepare a flexible selling and administrative expenses budget for April for sales volumes of $400,000, $500,000, and $600,000.

Flexible Budget for Selling and Administrative Expenses for a Service company Morningside Technologies Inc. uses flexible budgets that are based on the following data: 15% of sales Sales commissions Advertising expense 12% of sales Miscellaneous administrative expense $8,000 per month plus 10% of sales Office salaries expense $32,000 per month Customer support expenses $14,000 per month plus 18% of sales Research and development expense $35,000 per month Prepare a flexible selling and administrative expenses budget for April for sales volumes of $400,000, $500,000, and $600,000.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 17E

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