Flexible Budget for Selling and Administrative Expenses for a Service companyDaybreak Technologies Inc. uses flexible budgets that are based on the following data:Sales commissions16% of salesAdvertising expense12% of salesMiscellaneous administrative expense$5,000 per month plus 10% of salesOffice salaries expense$19,000 per monthCustomer support expenses$8,000 per month plus 18% of salesResearch and development expense$22,000 per monthPrepare a flexible selling and administrative expenses budget for April for sales volumes of $200,000, $300,000, and $400,000.Daybreak Technologies Inc.Flexible Selling and Administrative Expenses BudgetFor the Month Ending April 30Total sales$200,000$300,000$400,000Variable cost: Sales commissions$fill in the blank 1$fill in the blank 2$fill in the blank 3Advertising expensefill in the blank 4fill in the blank 5fill in the blank 6Miscellaneous administrative expensefill in the blank 7fill in the blank 8fill in the blank 9Customer support expensesfill in the blank 10fill in the blank 11fill in the blank 12Total variable cost$fill in the blank 13$fill in the blank 14$fill in the blank 15Fixed cost: Miscellaneous administrative expense$fill in the blank 16$fill in the blank 17$fill in the blank 18Office salaries expensefill in the blank 19fill in the blank 20fill in the blank 21Customer support expensesfill in the blank 22fill in the blank 23fill in the blank 24Research and development expensefill in the blank 25fill in the blank 26fill in the blank 27Total fixed cost$fill in the blank 28$fill in the blank 29$fill in the blank 30Total selling and administrative expenses$fill in the blank 31$fill in the blank 32$fill in the blank 33 Check My Work

Under flexible budget, variable cost changes with the volume of sales while the fixed cost remains…

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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 4PA: Budgeted income statement and supporting budgets for three months Bellaire Inc. gathered the...

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Flexible Budget for Selling and Administrative Expenses for a Service company

Daybreak Technologies Inc. uses flexible budgets that are based on the following data:

Sales commissions	16% of sales
Advertising expense	12% of sales
Miscellaneous administrative expense	$5,000 per month plus 10% of sales
Office salaries expense	$19,000 per month
Customer support expenses	$8,000 per month plus 18% of sales
Research and development expense	$22,000 per month

Prepare a flexible selling and administrative expenses budget for April for sales volumes of $200,000, $300,000, and $400,000.

Daybreak Technologies Inc.
Flexible Selling and Administrative Expenses Budget
For the Month Ending April 30
Total sales	$200,000	$300,000	$400,000
Variable cost:
Sales commissions	$fill in the blank 1	$fill in the blank 2	$fill in the blank 3
Advertising expense	fill in the blank 4	fill in the blank 5	fill in the blank 6
Miscellaneous administrative expense	fill in the blank 7	fill in the blank 8	fill in the blank 9
Customer support expenses	fill in the blank 10	fill in the blank 11	fill in the blank 12
Total variable cost	$fill in the blank 13	$fill in the blank 14	$fill in the blank 15
Fixed cost:
Miscellaneous administrative expense	$fill in the blank 16	$fill in the blank 17	$fill in the blank 18
Office salaries expense	fill in the blank 19	fill in the blank 20	fill in the blank 21
Customer support expenses	fill in the blank 22	fill in the blank 23	fill in the blank 24
Research and development expense	fill in the blank 25	fill in the blank 26	fill in the blank 27
Total fixed cost	$fill in the blank 28	$fill in the blank 29	$fill in the blank 30
Total selling and administrative expenses	$fill in the blank 31	$fill in the blank 32	$fill in the blank 33

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