Company selling and administrative expense budget


Problem:

The budgeted unit sales of Hearve Company for the upcoming fiscal year are provided below:

                             1st QTR   2nd QTR   3rd QTR    4th QTR
Budgeted unit sales: 12,000    14,000     11,000       10,000

The company's variable selling and administrative expenses per unit are $2.75. Fixed selling and administrative expenses include advertising expenses of $12,000 per quarter, executive salaries of $40,000 per quarter, and depreciation of $16,000 per quarter. In addition, the company will make insurance payments of $6,000 in the 2nd quarter and $6,000 in the 4th quarter. Finally, property taxes of $6,000 will be paid in the 3rd quarter.

Prepare the company's selling and administrative expense budget for the upcoming fiscal year.

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Accounting Basics: Company selling and administrative expense budget
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