Poriss Corporation makes and sells a single product called a Yute. The company is in the process of preparing its Selling and Administrative Expense Budget for the last quarter of the year. The following budget data are available: All of these expenses (except depreciation) are paid in cash in the month they are incurred. If the company has budgeted to sell 19,000 Yutes in November, then the total budgeted selling and administrative expenses for November would be:
A)$546,000
B)$280,000
C)$266,000
D)$536,000

Question

Poriss Corporation makes and sells a single product called a Yute. The company is in the process of preparing its Selling and Administrative Expense Budget for the last quarter of the year. The following budget data are available:  All of these expenses (except depreciation) are paid in cash in the month they are incurred. If the company has budgeted to sell 19,000 Yutes in November, then the total budgeted selling and administrative expenses for November would be:
A)$546,000 
B)$280,000 
C)$266,000 
D)$536,000

Quizplus · Accepted Answer

Total selling and administrative expenses for November = 
Advertising expenses + Sales Salaries and commissions + Office salaries and expenses + Depreciation + Other expenses
= $100,000 + $220,000 + $130,000 + $46,000 + $50,000
= $546,000
Therefore, the correct option is A) $546,000.

Poriss Corporation Makes and Sells a Single Product Called a Yute