Question: Agent Blaze uses flexible budgets that are based on the following data:
| Sales commissions |
8% of sales |
| Advertising expense |
22% of sales |
| Miscellaneous selling expense |
$2,600 plus 2% of sales |
| Office salaries expense |
$17,000 per month |
| Office supplies expense |
3% of sales |
| Miscellaneous administrative expense |
$1,850 per month plus 1% of sales |
Prepare a flexible selling and administrative expenses budget for January 2016, for sales volumes of $115,000, $145,000, and $175,000. Enter all amounts as positive numbers.
| Agent Blaze |
| Flexible Selling and Administrative Expenses Budget |
| For the Month Ending January 31, 2016 |
| Total sales |
$115,000 |
$145,000 |
$175,000 |
| Variable cost: |
|
|
|
| Sales commissions |
$ |
$ |
$ |
| Advertising expense |
|
|
|
| Miscellaneous selling expense |
|
|
|
| Office supplies expense |
|
|
|
| Miscellaneous administrative expense |
|
|
|
| Total variable cost |
$ |
$ |
$ |
| Fixed cost: |
|
|
|
| Miscellaneous selling expense |
$ |
$ |
$ |
| Office salaries expense |
|
|
|
| Miscellaneous administrative expense |
|
|
|
| Total fixed cost |
$ |
$ |
$ |
| Total selling and administrative expenses |
$ |
$ |
$ |