Shep Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For thefirst quarter of 2019, the following data are developed:F2 -2 @WS1. Sales: 20,000 units; unit selling price:2. Variable costs per dollar of sales:Sales commissionsDelivery expenseAdvertising3. Fixed costs per quarter:Sales salaries.Office salariesF3 +3EDDepreciation#InsuranceUtilitiesVariable expensesSales commissionsDelivery expense4InstructionsPrepare a selling and administrative expense budget for the first quarter of 2019.AdvertisingF4 Ⓡ$RFF5A5 %TF6GHF7 C6 AYH$256%$30,0002%18,0004%8,000Selling and Administrative Expense BudgetFor the Quarter Ended March 31, 20193,0001,100SHEP COMPANYF87 &Search LUJF98LG-F10 A9*(KO4F11 -0L)OF12 +P-;Prt ScScrlk=Ins+I11DelBackspacePgUpHomeNuEnte Variable expensesF3 O +Sales commissionsDelivery expenseAdvertisingTotal variableFixed expensesSales salariesOffice salariesDepreciationInsuranceUtilitiesTotal fixedF4 ⒸTotal selling and administrative expensesF5 AF6SHEP COMPANYSelling and Administrative Expense BudgetFor the Quarter Ended March 31, 2019▬▬F7 çaO SearchF8F9 BBLGF10F11 -F12 +Prt ScScrLkIns

Sales commission = Total sales ×6% = 20,000×$25×6% = $30,000 Delivery expense = 20,000×$25×2% =…

Shep Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first quarter of 2019, the following data are developed: 1. Sales: 20,000 units; unit selling price: 2. Variable costs per dollar of sales: Sales commissions Delivery expense Advertising 3. Fixed costs per quarter: Sales salaries Office salaries Depreciation Insurance Utilities Instructions $25 Variable expenses 6% 2% 4% $30,000 18,000 8,000 3,000 1,100 Prepare a selling and administrative expense budget for the first quarter of 2019. SHEP COMPANY Selling and Administrative Expense Budget For the Quarter Ended March 31, 2019

Shep Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first quarter of 2019, the following data are developed: 1. Sales: 20,000 units; unit selling price: 2. Variable costs per dollar of sales: Sales commissions Delivery expense Advertising 3. Fixed costs per quarter: Sales salaries Office salaries Depreciation Insurance Utilities Instructions $25 Variable expenses 6% 2% 4% $30,000 18,000 8,000 3,000 1,100 Prepare a selling and administrative expense budget for the first quarter of 2019. SHEP COMPANY Selling and Administrative Expense Budget For the Quarter Ended March 31, 2019

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 5P: Selling and administrative expense budget and budgeted income statement Budgeted selling and...

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