Problem 13-57 (Algo) Sales Expense Budget (LO 13-4)SPU, Ltd., has just recelved its sales expense report for January, which follows.ItemAmountSales commissions$370, 5009e,400Sales staff salariesTelephone and mailingBuilding lease payment51, 00060,00019,1008e, 00033,75051,190UtilitiesPackaging and deliveryDepreciationMarketing consultantsYou have been asked to develop budgeted costs for the coming year. Because this month is typical, you decide to prepare anestimated budget for a typical month in the coming year and you uncover the following additional data:Sales volume is expected to Increase by 14 percent.Sales prices are expected to decrease by 10 percent.Commissions are based on a percentage of sales revenue.• Sales staff salarles will increase 4 percent next year regardless of sales volume.• Bullding rent is based on a five-year lease that expires in three years.• Telephone and malling expenses are scheduled to Increase by 6 percent even with no change In sales volume. However, thesecosts are varlable with the number of units sold, as are packaging and delivery costs.Utilities costs are scheduled to increase by 4 percent regardless of sales volume.• Depreclatlon Includes furniture and fixtures used by the sales staff. The company has Just acquired an additlonal $61,000 Infurniture that will be recelved at the start of next year and will be depreciated over a 10-year life using the stralght-line method.• Marketing consultant expenses were for a special advertising campalgn that runs from time to time. During the coming year, thesecosts are expected to average $64,500 per month.Requlred:Prepare a budget for sales expenses for a typical month in the coming year. (Do not round Intermedlate calculatlons. Round yourfinal answers to nearest whole dollar amount.)Budgeted TypicalMonthItemSales commissionsSales staff salariesTelephone and mailingBuilding lease paymentUtilitiesPackaging and deliveryDepreciationMarketing consultantsTotal budgeted costs

Solution:- Given, SPU, Ltd., has just received its sales expense report for January You have been…

Required: Prepare a budget for sales expenses for a typical month in the coming year. (Do not round Intermediate calculations. Round your Tinal answers to nearest whole dollar amount.) Budgeted Typical Month Item Sales commissions Sales staff salaries Telephone and mailing Building lease payment Utilities Packaging and delivery Depreciation Marketing consultants Total budgeted costs

Required: Prepare a budget for sales expenses for a typical month in the coming year. (Do not round Intermediate calculations. Round your Tinal answers to nearest whole dollar amount.) Budgeted Typical Month Item Sales commissions Sales staff salaries Telephone and mailing Building lease payment Utilities Packaging and delivery Depreciation Marketing consultants Total budgeted costs

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 6PA: Budgeted income statement and balance sheet As a preliminary to requesting budget estimates of...

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