Managerial Accounting: Tools for Business Decision Making 7e Binder Ready Version + WileyPLUS Registration Card
7th Edition
ISBN: 9781119036449
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: Wiley (WileyPLUS Products)
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Textbook Question
Chapter 9, Problem 16Q
Everly Company’s variable selling and administrative expenses are 12% of net sales. Fixed expenses are $50,000 per quarter. The sales budget shows expected sales of $200,000 and $240,000 in the first and second quarters, respectively, What are the total budgeted selling and administrative expenses for each quarter?
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Kirkland Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6
months of 2020, the following data are available.
1. Sales: 20,300 units quarter 1; 22,000 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 $10,200, office salaries $6,160, depreciation $4,730, insurance $1,660, utilities $890,
and repairs expense $610.
4.
Unit selling price: $22.
Prepare a selling and administrative expense budget by quarters for the first 6 months of 2020. (List variable expenses before fixed
expense.)
KIRKLAND COMPANY
Selling and Administrative Expense Budget
Quarter
1
2
Six Months
A retail business budgets for a period with a total sales revenue (operating revenue) of $ 65,000,000. Total operating costs (fixed and variable costs) are expected to amount to 85% of sales revenue. Budgeted coverage rate is 30%.a) What is the budgeted operating profit?b) What is budgeted zero point sales?
Everly Company’s variable selling and administrative expenses are 12% of net sales. Fixed expenses are $50,000 per quarter. The sales budget shows expected sales of $200,000 and $240,000 in the first and second quarters, respectively.
What are the total budgeted selling and administrative expenses in quarter 1?
Chapter 9 Solutions
Managerial Accounting: Tools for Business Decision Making 7e Binder Ready Version + WileyPLUS Registration Card
Ch. 9 - Prob. 1QCh. 9 - Prob. 2QCh. 9 - Prob. 3QCh. 9 - (a) Accounting plays a relatively unimportant role...Ch. 9 - What criteria are helpful in determining the...Ch. 9 - Lori Wilkins maintains that the only difference...Ch. 9 - Prob. 7QCh. 9 - What is budgetary slack? What incentive do...Ch. 9 - Prob. 9QCh. 9 - What budget is the starting point in preparing the...
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