Accounting 1B Written Assignment. Chapter 22- Budgeting Selling Expense Budget Prepare a monthly flexible Selling Expense budget for MaBak Inc. for Sales Volumes of $300,000 and $350,000 based on the following data: Sales commissions Sales manager's salary Advertising expense Shipping expense Misc. expense Sales Variable Selling Expenses: Sales Commissions (12% of Sales) Shipping Expense (57. of Sales) Miscellaneous Expense - Variable Total Variable Expense Fixed Selling Expenses: Sales Manager Salary Advertising Expense Miscellaneous Expense - Fixed Total Fixed Expense Total Selling Expense 12.0% $ 95,000 $ 15,000 5.0% $ 2,500 $300,000 436,000 15,000 95,000 of sales per month per month of sales 15,000 2,500 112,500 erial $350,000 $42,000 17,500 95,000 15,000 2,500 112.500

Accounting 1B Written Assignment. Chapter 22- Budgeting Selling Expense Budget Prepare a monthly flexible Selling Expense budget for MaBak Inc. for Sales Volumes of $300,000 and $350,000 based on the following data: Sales commissions Sales manager's salary Advertising expense Shipping expense Misc. expense Sales Variable Selling Expenses: Sales Commissions (12% of Sales) Shipping Expense (57. of Sales) Miscellaneous Expense - Variable Total Variable Expense Fixed Selling Expenses: Sales Manager Salary Advertising Expense Miscellaneous Expense - Fixed Total Fixed Expense Total Selling Expense 12.0% $ 95,000 $ 15,000 5.0% $ 2,500 $300,000 436,000 15,000 95,000 of sales per month per month of sales 15,000 2,500 112,500 erial $350,000 $42,000 17,500 95,000 15,000 2,500 112.500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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QUESTION 1Nana Adom Company Limited is a wholesale company that deals in general goods. Thefollowing information relates to the next budget period.1. Expenses: (in GH¢)October November DecemberSelling & distribution 20,000 30,000 34,000General & administration 15,000 18,000 12,000Bad debts 21,000 15,000 20,000Rate 8,000 6,000 10,000Interest charges 1,600 2,000 2,400Depreciation expenses 30,000 10,000 10,000Expenses are payable in the month of incurrence.2. A contingent liability of GH¢10,000 is expected to mature in November3. Estimated cash balance at the end of September will be GH¢5000. Cash balances shouldnot be less than GH¢10,000. Cash can be borrowed in multiples of GH¢10,000 to financeany deficit at an interest rate of 15% per annum.4. The sales manager's salary, which is GH¢ 7000 per month is expected to increase byGH¢1000 every month after June.5. Motor vehicle will be purchased in November at GH¢240,000. Depreciation for motor vanshould be calculated at 10% in…
Flexible Budget for Selling and Administrative Expenses for a Service Company Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales commissions 14% of sales 20% of sales $5,500 per month plus 12% of sales $28,000 per month $13,000 per month plus 20% of sales $32,000 per month Advertising expense Miscellaneous administrative expense Office salaries expense Customer support expenses Research and development expense Prepare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, $500,000, and $600,000. (Use Exhibit 5 as a model.)
The actual selling expenses incurred in March 2020 by Fallon Company are as follows. Variable Expenses Fixed Expenses Sales commissions $10,994 Sales salaries $35,400 Advertising 10,304 Depreciation 7,100 Travel 8,470 Insurance 1,300 Delivery 3,498 (a) Prepare a flexible budget performance report for March, assuming that March sales were $169,400. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 6%, traveling 5%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,400, Depreciation on delivery equipment $7,100, and insurance on delivery equipment $1,300. (List variable costs before fixed costs.) (b)Prepare a flexible budget performance report, assuming that March sales were $176,700. (List variable costs before fixed costs.)
Budgeted Selling and Administrative Expenses Salary Expense Sales Commissions 5% of Sales Insurance Expense Rent Depreciation on equipment Utilities Total Operating Expenses Schedule of Cash Payments for Selling_and Administrative Expenses Salary Expense 100% of Prior Month Sales Commissions Insurance Expense Rent 100% of Prior Months Utilities Expense Total Payments for Selling and Administrative Expenses October 46,000 23,000 20,000 24,000 28,500 2,900 144,400 ? 23,100 20,000 ? 3,000 ? November December 46,500 47,000 23,500 23,300 20,000 20,000 24,000 24,000 28,500 28,500 3,100 3,300 145,600 146,100 46,500 ? 20,000 ? ? ? ? ? 20,000 24,000 ? ? What is the total amount of Selling and Administrative expenses for the fourth quarter that the company will report on its pro forma income statement?
The actual selling expenses incurred in March 2020 by Fallon Company are as follows. Variable Expenses Fixed Expenses Sales commissions $14,228 Sales salaries $35,000 Advertising 10,086 Depreciation 7,200 Travel 8,355 Insurance 1,900 Delivery 3,422 (a) Prepare a flexible budget performance report for March, assuming that March sales were $167,100. Variable costs and their percentage relationship to sales are sales commissions 8%, advertising 6%, traveling 5%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,000, Depreciation on delivery equipment $7,200, and insurance on delivery equipment $1,900. (List variable costs before fixed costs.)
4. Onovw IVIC T oW Morningside Technologies Inc. uses flexible budgets that are based on the following data: Sales commissions 5% of sales 2. Advertising expense 23% of sales Miscellaneous administrative expense $1,850 per month plus 1% of sales 3. Office salaries expense $17,000 per month Customer support expenses $2,600 plus 2% of sales Research and development expense 3,450 per month 5. 6. Prepare a flexible selling and administrative expenses budget for April for sales volumes of $115,000, $145,000, and $175,000. Enter all amounts as positive numbers. 7. Morningside Technologies Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending April 30 Total sales $115,000 $145,000 $175,000 Variable cost: Sales commissions Advertising expense Miscellaneous administrative expense Customer support expenses Total variable cost Civod corti Previous Check My Work 3 more Check My Work uses remaining. Progress: 8/8 items 12:5 4/22
Prepare a budgeted income statement using the information shown. Sales (units) Sales price per unit Uncollectible expense Direct material per unit Direct labor per unit (hours) Direct labor rate per hour Manufacturing overhead Variable sales and administration expenses per unit Fixed sales and administration expenses 15,000 2$ 40 1%* 2$ 0.5 $ $15,000 $ 2 $20,000 15%** 20 Таxes *of sales **of income before taxes
Budgeted Selling and Administrative Expenses Salary Expense Sales Commissions 5% of Sales Insurance Expense Rent Depreciation on equipment Utilities Total Operating Expenses Schedule of Cash Payments for Selling and Administrative Expenses Salary Expense 100% of Prior Month Sales Commissions Insurance Expense October November December Multiple Choice 30,000 30,500 15,000 15,500 12,000 12,000 14,400 14,400 16,500 16,500 2,100 2,300 90,000 91, 200 ? 15,100 12,000 ? 2,200 ? 30,500 ? 12,000 ? ? ? Rent 100% of Prior Months Utilities Expense Total Payments for Selling and Administrative Expenses The amount of cash paid for Selling and Administrative expenses during the month of November is: 31,000 15,300 12,000 14,400 16,500 2,500 91,700 ? ? 12,000 14,400 ?
Q2: The following monthly budgeted data are available for a wholesale company: Product Product Product A B с $800,000 $400,000 $200,000 640,000 240,000 140,000 $160,000 $160,000 $60,000 Sales Variable expenses Contribution margin The budgeted total fixed expense is $ 150,000. Required: a) Calculate the break-even sales for the month? b) Calculate the margin of safety in sales dollars? c) What is the sales Mix?
Sales (units) 13,000 Sales price per unit $40 Uncollectible expense* 1% Direct material per unit $1 Direct labor per unit (hours) 0.50 Direct labor rate per hour $21 Manufacturing overhead $14,000 Variable sales and administrative expenses per unit $2 Fixed sales and administrative expenses $21,000 Taxes** 15% *of sales **of income before taxes Prepare a budgeted income statement using the above information. Round final answers to nearest whole dollar. Budgeted Income Statement For the Year Ending Dec. 31, 2020 $fill in the blank 2 $fill in the blank 4 fill in the blank 6 fill in the blank 8 fill in the blank 10 $fill in the blank 12 fill in the blank 14 fill in the blank 16 fill in the blank 18 $fill in the blank 20 fill in the blank 22 $fill in the blank 24
QUESTION2 A company manufactures a single product. Budget and Standard cost details for next year include: Selling Price per unit R24.00 Variable Production cost per unit R8.60 Fixed production costs R650 000 Fixed selling and distrivution costs R230 400 Sales commission 5% of selling price Sales 90 000 units Required 1. Calculate the break-even point in units 2. Calculate the breakeven point in rands 3. Calculate the percentage by which the budgeted sales can fall before The company begins to make a loss 4. The marketing manager has suggested that the selling price per unit can be increased to R25.00.If the sales…
Flexible budget for selling and administrative expenses for a service company Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales commissions 10% of sales Advertising expense 14% of sales Miscellaneous administrative expense $9,500 per month plus 3% of sales Office salaries expense $49,000 per month Customer support expenses $25,000 per month plus 31% of sales Research and development expense $74,000 per month This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. X Open spreadsheet Prepare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, $700,000, and $1,200,000. (Use Exhibit 5 as a model.) Enter all amounts as positive numbers.