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 $7,000 per month plus 12% of sales $29,000 per month $12,000 per month plus 20% of sales $31,000 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. 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: PREBER Amount Amount Amount $400,000 $500,000 $600,000 000 000
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 15% of sales 18% of sales $7,000 per month plus 12% of sales $29,000 per month $12,000 per month plus 20% of sales $31,000 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. 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: PREBER Amount Amount Amount $400,000 $500,000 $600,000 000 000
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 9P: Flexible budget for factory overhead Presented below are the monthly factory overhead cost budget...
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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
Research and development expense
Line Item Description
Total sales
Variable cost:
Prepare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, $500,000, and $600,000.
Digital Solutions Inc.
Flexible Selling and Administrative Expenses Budget
For the Month Ending October 31
Total variable cost
PHINE BOR
Fixed cost:
15% of sales
18% of sales
$7,000 per month plus 12% of sales
$29,000 per month
$12,000 per month plus 20% of sales
$31,000 per month
Amount Amount Amount
$400,000 $500,000 $600,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3777cddf-4970-404f-9b97-0205ff6953f8%2Fcaab1122-ccb2-456d-9b10-9212ba161776%2Fxmk3yls_processed.jpeg&w=3840&q=75)
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
Research and development expense
Line Item Description
Total sales
Variable cost:
Prepare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, $500,000, and $600,000.
Digital Solutions Inc.
Flexible Selling and Administrative Expenses Budget
For the Month Ending October 31
Total variable cost
PHINE BOR
Fixed cost:
15% of sales
18% of sales
$7,000 per month plus 12% of sales
$29,000 per month
$12,000 per month plus 20% of sales
$31,000 per month
Amount Amount Amount
$400,000 $500,000 $600,000
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