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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: Sales commissions Advertising expense Miscellaneous administrative expense Office salaries expense Customer support expenses 8% of sales 15% of sales $10,000 per month plus 4% of sales $50,000 per month $20,000 per month plus 30% of sales Research and development expense $75,000 per month Prepare a flexible selling and administrative expenses budget for October for sales volumes of $500,000, $750,000, and $1,000,000. (Use Exhibit 4 as a model.) Flexible Selling and Administrative Expenses Budget Digital Solutions Inc. For the Month Ending October 31 Amount $500,000 Amount $750,000 Amount $1,000,000 Line Item Description Total sales Variable cost: Sales commissions 40,000 60,000 80,000 Advertising expense 75,000 112,500 150,000

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 Advertising expense Miscellaneous administrative expense Office salaries expense Customer support expenses 8% of sales 15% of sales $10,000 per month plus 4% of sales $50,000 per month $20,000 per month plus 30% of sales Research and development expense $75,000 per month Prepare a flexible selling and administrative expenses budget for October for sales volumes of $500,000, $750,000, and $1,000,000. (Use Exhibit 4 as a model.) Flexible Selling and Administrative Expenses Budget Digital Solutions Inc. For the Month Ending October 31 Amount $500,000 Amount $750,000 Amount $1,000,000 Line Item Description Total sales Variable cost: Sales commissions 40,000 60,000 80,000 Advertising expense 75,000 112,500 150,000

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 7P: Preparing a performance report Use the flexible budget prepared in P7-6 for the 31,000-unit level...
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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: Sales commissions Advertising expense Miscellaneous administrative expense Office salaries expense Customer support expenses 8% of sales 15% of sales $10,000 per month plus 4% of sales $50,000 per month $20,000 per month plus 30% of sales Research and development expense $75,000 per month Prepare a flexible selling and administrative expenses budget for October for sales volumes of $500,000, $750,000, and $1,000,000. (Use Exhibit 4 as a model.) Flexible Selling and Administrative Expenses Budget Digital Solutions Inc. For the Month Ending October 31 Amount $500,000 Amount $750,000 Amount $1,000,000 Line Item Description Total sales Variable cost: Sales commissions 40,000 60,000 80,000 Advertising expense 75,000 112,500 150,000
Transcribed Image Text: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 Advertising expense Miscellaneous administrative expense Office salaries expense Customer support expenses 8% of sales 15% of sales $10,000 per month plus 4% of sales $50,000 per month $20,000 per month plus 30% of sales Research and development expense $75,000 per month Prepare a flexible selling and administrative expenses budget for October for sales volumes of $500,000, $750,000, and $1,000,000. (Use Exhibit 4 as a model.) Flexible Selling and Administrative Expenses Budget Digital Solutions Inc. For the Month Ending October 31 Amount $500,000 Amount $750,000 Amount $1,000,000 Line Item Description Total sales Variable cost: Sales commissions 40,000 60,000 80,000 Advertising expense 75,000 112,500 150,000
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