Kirkland Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2017, the following data are available. 1. Sales: 20,800 units quarter 1; 22,100 units quarter 2. 2. Variable costs per dollar of sales: sales commissions 5%, delivery expense 2%, and advertising 3%. 3. Fixed costs per quarter: sales salaries $10,900, office salaries $6,160, depreciation $4,490, insurance $2,080, utilities $880, and repairs expense $670. 4. Unit selling price: $24. Prepare a selling and administrative expense budget by quarters for the first 6 months of 2017. KIRKLAND COMPANY Selling and Administrative Expense Budget For the Six Months Ending June 30, 2017 : Quarter Budgeted Sales in Units Variable Expenses Sales Commissions Delivery Expense Advertising Total Variable Fixed Expenses Sales Salaries Office Salaries Depreciation Insurance Utilities Repairs Expense Total Fixed Total Selling and Administrative Expenses • 0000 40 0000 0000000 0000 00000000 Six Months

Kirkland Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2017, the following data are available. 1. Sales: 20,800 units quarter 1; 22,100 units quarter 2. 2. Variable costs per dollar of sales: sales commissions 5%, delivery expense 2%, and advertising 3%. 3. Fixed costs per quarter: sales salaries $10,900, office salaries $6,160, depreciation $4,490, insurance $2,080, utilities $880, and repairs expense $670. 4. Unit selling price: $24. Prepare a selling and administrative expense budget by quarters for the first 6 months of 2017. KIRKLAND COMPANY Selling and Administrative Expense Budget For the Six Months Ending June 30, 2017 : Quarter Budgeted Sales in Units Variable Expenses Sales Commissions Delivery Expense Advertising Total Variable Fixed Expenses Sales Salaries Office Salaries Depreciation Insurance Utilities Repairs Expense Total Fixed Total Selling and Administrative Expenses • 0000 40 0000 0000000 0000 00000000 Six Months

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 3PB: TIB makes custom guitars and prepared the following sales budget for the second quarter It also has...

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