Scotch,Inc.has prepared the operating budget for the first quarter of the year.The company forecast sales of $45,000 in January,$55,000 in February,and $65,000 in March.Variable and fixed expenses are as follows: Variable Expenses:
Power cost (40% of sales)
Miscellaneous expenses: (15% of sales)
Fixed Expenses:
Salaries expense: $10,000 per month
Rent expense: $5,000 per month
Depreciation expense: $1,200 per month
Power cost/fixed portion: $800 per month
Miscellaneous expenses/fixed portion: $1,200 per month
Using the information above,calculate the amount of selling and administrative expenses for the month of February.
A) $42,950
B) $53,950
C) $30,250
D) $48,450

Question

Quizplus · Accepted Answer

D)
Calculation of total selling and administrative expenses for the month of February: 11ea8870_3621_2df0_bb89_65a07e07c63e_TB5025_00