The budgeted unit sales of Haerve Company for the upcoming fiscal year are provided below:
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |
| 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 $6,000 will be
paid in the 3rd Quarter.
|
| Required: |
Prepare the company’s selling and administrative expense budget for the upcoming fiscal year. (Input
all amounts as positive values. Leave no cells blank - be certain to
enter "0" wherever required. Omit the "$" sign in your response.)
|
Haerve Company
Selling and Administrative Expense Budget | |||||
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Year | |
Variable selling and administrative expenses  | $ 33,000 | $ 38,500 | $ 30,250 | $ 27,500 | $ 129,250 |
| Fixed selling and administrative expenses: | |||||
| Advertising | 12,000 | 12,000 | 12,000 | 12,000 | 48,000 |
| Executive salaries | 40,000 | 40,000 | 40,000 | 40,000 | 160,000 |
| Insurance | 0 | 6,000 | 0 | 6,000 | 12,000 |
| Property taxes | 0 | 0 | 6,000 | 0 | 6,000 |
| Depreciation | 16,000 | 16,000 | 16,000 | 16,000 | 64,000 |
| Total fixed selling and administrative expenses | 68,000 | 74,000 | 74,000 | 74,000 | 290,000 |
| Total selling and administrative expenses | n/r  | n/r | n/r | n/r | n/r |
| Less depreciation | n/r | n/r | n/r | n/r | n/r |
| Cash disbursements for selling and administrative expenses | $ n/r | $ n/r | $ n/r | $ n/r | $ n/r |
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