Elbert Company classifies its selling and administrative expense budget into variable and fixed components. Variable expenses are expected to be $25,100 in the first quarter, and $5,100 increments are expected in the remaining quarters of 2020. Fixed expenses are expected to be $40,100 in each quarter. Prepare the selling and administrative expense budget by quarters and in total for 2020.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Elbert Company classifies its selling and administrative expense budget into variable and fixed components. Variable expenses are expected to be $25,100 in the first quarter, and $5,100 increments are expected in the remaining quarters of 2020. Fixed expenses are expected to be $40,100 in each quarter.
Prepare the selling and administrative expense budget by quarters and in total for 2020.
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ELBERT COMPANY
Selling and Administrative Expense Budget For the Year Ending December 31, 2020December 31, 2020For the Quarter Ending December 31, 2020 |
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Quarter
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1
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2
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3
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4
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Year
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Direct LaborDirect MaterialsFixed ExpensesProduction UnitsSalesTotal Selling and Administrative ExpensesVariable Expenses
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$
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$
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$
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$
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$
|
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Direct LaborDirect MaterialsFixed ExpensesProduction UnitsSalesTotal Selling and Administrative ExpensesVariable Expenses
|
|||||||||
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Direct LaborDirect MaterialsFixed ExpensesProduction UnitsSalesTotal Selling and Administrative ExpensesVariable Expenses
|
$
|
$
|
$
|
$
|
$
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