Pearl, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $40,000.00 in January, 50,000.00 in February, and $60,000.00 in March. Variable and fixed selling and administrative expenses are as follows: Variable Expenses: Power cost (30% of sales) Miscellaneous expenses: (10% of sales) Fixed Expenses: Salaries expense: $8,000.00 per month Rent expense: $5,000.00 per month Depreciation expense: $1,000.00 per month Power cost/fixed portion: $600.00 per month Miscellaneous expenses/fixed portion: $1,200.00 per month Calculate total budgeted selling and administrative expenses for the month of January. O A. $39,800.00 O B. $35,800.00 OC. $16,000.00 O D. $31,800.00

Pearl, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $40,000.00 in January, 50,000.00 in February, and $60,000.00 in March. Variable and fixed selling and administrative expenses are as follows: Variable Expenses: Power cost (30% of sales) Miscellaneous expenses: (10% of sales) Fixed Expenses: Salaries expense: $8,000.00 per month Rent expense: $5,000.00 per month Depreciation expense: $1,000.00 per month Power cost/fixed portion: $600.00 per month Miscellaneous expenses/fixed portion: $1,200.00 per month Calculate total budgeted selling and administrative expenses for the month of January. O A. $39,800.00 O B. $35,800.00 OC. $16,000.00 O D. $31,800.00

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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TIB makes custom guitars and prepared the following sales budget for the second quarter It also has this additional information related to its expenses: Direct material per unit $55, Direct labor per hour 20, Variable manufacturing overhead per hour 3.50, Fixed manufacturing overhead per month 3,000, Sales commissions per unit 20, Sales salaries per month 5,000, Delivery expense per unit 0.50, Utilities per month 4,000. Administrative salaries per month 20,000, Marketing expenses per month 8,000, Insurance expense per month 11,000, Depreciation expense per month 9,000. Prepare a sales and administrative expense budget for each month in the quarter ended June 30. 2018.
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One Device makes universal remote controls and expects to sell 500 units in January, 800 in February, 450 in March, 550 in April, and 600 in May. The required ending inventory is 20% of the next months sales. Prepare a production budget for the first four months of the year.
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