Neeley Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first quarter of 2008, the following data are developed:
1. Sales: 20,000 units; unit selling price: $35
2. Variable costs per dollar of sales:
Sales commissions 6%
Delivery expense 2%
Advertising 4%
3. Fixed costs per quarter:
Sales salaries $24,000
Office salaries 17,000
Depreciation 6,000
Insurance 2,000
Utilities 1,000
Instructions
Prepare a selling and administrative expense budget for the first quarter of 2008.