### 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- **Advertising Expense:** 20% of sales- **Miscellaneous Administrative Expense:** $5,500 per month plus 12% of sales- **Office Salaries Expense:** $28,000 per month- **Customer Support Expenses:** $13,000 per month plus 20% of sales- **Research and Development Expense:** $32,000 per monthDigital Solutions Inc. needs to prepare a flexible selling and administrative expenses budget for October. The sales volumes considered are $400,000, $500,000, and $600,000. (Use Exhibit 5 as a model.) **Digital Solutions Inc.****Flexible Selling and Administrative Expenses Budget****For the Month Ending October 31**---**Total Sales**: - $400,000 - $500,000 - $600,000 **Variable Cost:**- [Dropdown Menu] $ [Input Box] $ [Input Box] $ [Input Box]- [Dropdown Menu] $ [Input Box] $ [Input Box] $ [Input Box]- [Dropdown Menu] $ [Input Box] $ [Input Box] $ [Input Box]**Total Variable Cost:**- $ [Input Box] $ [Input Box] $ [Input Box]**Fixed Cost:**- [Dropdown Menu] $ [Input Box] $ [Input Box] $ [Input Box]- [Dropdown Menu] $ [Input Box] $ [Input Box] $ [Input Box]- [Dropdown Menu] $ [Input Box] $ [Input Box] $ [Input Box]**Total Fixed Cost:**- $ [Input Box] $ [Input Box] $ [Input Box]**Total Selling and Administrative Expenses:**- $ [Input Box] $ [Input Box] $ [Input Box] ---This template outlines a flexible budget structure for analyzing selling and administrative expenses at varying levels of sales revenue. Users can input costs and calculate totals for variable and fixed expenses across different sales scenarios.

Fixed costs are same for all sales volumes. Total variable costs will vary for each sales volume.

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.)

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.)

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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Flexible budget for selling and administrative expenses for a service company Digital Solutions Inc. uses flexible budgets that are based on the following data: Line Item Description Value Sales commissions 14% of sales Advertising expense 20% of sales Miscellaneous administrative expense $8,500 per month plus 12% of sales Office salaries expense $28,000 per month Customer support expenses $14,000 per month plus 20% of sales Research and development expense $32,000 per month Prepare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, $500,000, and $600,000. (Use Exhibit 4 as a model.) Digital Solutions Inc.Flexible Selling and Administrative Expenses BudgetFor the Month Ending October 31 Line Item Description Amount Amount Amount Total sales $400,000 $500,000 $600,000 Variable cost: $Sales commissions $Sales commissions $Sales commissions Advertising expense Advertising expense Advertising…
. 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 15% of sales 18% of sales $5,000 per month plus 12% of sales $28,000 per month $12,000 per month plus 20% of sales $30,000 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 4 as a model.) Digital Solutions Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending October 31 Line Item Description Total sales Variable cost: Total variable cost Fixed cost: Total fixed cost Total selling and administrative expenses Amount Amount Amount $400,000 $500,000 $600,000 $ $ $ $ $
Flexible Budget for Selling and Administrative Expenses for a Service company Daybreak Technologies Inc. uses flexible budgets that are based on the following data: Sales commissions 16% of sales Advertising expense 12% of sales Miscellaneous administrative expense $5,000 per month plus 10% of sales Office salaries expense $19,000 per month Customer support expenses $8,000 per month plus 18% of sales Research and development expense $22,000 per month Prepare a flexible selling and administrative expenses budget for April for sales volumes of $200,000, $300,000, and $400,000. Daybreak Technologies Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending April 30 Total sales $200,000 $300,000 $400,000 Variable cost: Sales commissions $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Advertising expense fill in the blank 4 fill in the blank 5 fill in the blank 6 Miscellaneous administrative expense fill in the…
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 6% of sales Advertising expense 14% of sales Miscellaneous administrative expense $11,000 per month plus 4% of sales Office salaries expense $52,000 per month Customer support expenses $18,000 per month plus 31% of sales Research and development expense $78,000 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. Open spreadsheet Prepare a flexible selling and administrative expenses budget for October for sales volumes of $600,000, $900,000, and $1,000,00o. (Use Exhibit 5 as a model.) Enter all amounts as positive numbers. Digital Solutions Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending October 31 Total sales $600,000 $900,000 $1,000,000 Variable cost:…
Preparing a Selling and Administrative Expenses Budget Fazel Company makes and sells paper products. In the coming year, Fazel expects total sales of $19,800,000. There is a 4% commission on sales. In addition, fixed expenses of the sales and administrative offices include the following: Salaries $ 960,000 Utilities 365,000 Office space 230,000 Advertising 1,200,000 Required: Prepare a selling and administrative expenses budget for Fazel Company for the coming year. Fazel Company Selling and Administrative Expenses Budget For the Coming Year Variable selling expenses Fixed expenses: Salaries Utilities Office spacе Advertising Total fixed expenses Total selling and administrative expenses
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Flexible Budget for Selling and Administrative Expenses for a Service Company
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