Question 5 Zelia, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $45,000.00 in January, $55,000.00 in February, and $65,000.00 in March. Variable and fixedexpenses are as follows:Variable Expenses:Power cost (30% of sales)Miscellaneous expenses: (10% of sales) Fixed Expenses:Salaries expense: $8,000.00 per monthRent expense: $5,000.00 per monthDepreciation expense: $1,400.00 per monthPower cost/fixed portion: $600.00 per monthMiscellaneous expenses/fixed portion: $1,000.00 per monthO A. $38,000.00O B. $42,000.00OC. $34,000.00

Option (a) is the correct answer

Zelia, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $45,000.00 in January, $55,000.00 in February, and $65,000.00 in March. Variable and fixed fallaue

Zelia, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $45,000.00 in January, $55,000.00 in February, and $65,000.00 in March. Variable and fixed fallaue

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 12PB: Before the year began, the following static budget was developed for the estimated sales of 50,000....

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Question 5

Zelia, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $45,000.00 in January, $55,000.00 in February, and $65,000.00 in March. Variable and fixed
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: $1,400.00 per month
Power cost/fixed portion: $600.00 per month
Miscellaneous expenses/fixed portion: $1,000.00 per month
O A. $38,000.00
O B. $42,000.00
OC. $34,000.00

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