7.8: Selling and Administrative Cost Budget

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The selling and administrative cost budget lists operating expenses on a line-by-line basis and totals the amounts. The selling and administrative cost budgets for both companies follow.

**Souvenir Statues**
**Selling and Administrative Cost Budget**
Selling expenses:
$\ \quad \quad$Sales commissions expenses		$16,300
$\ \quad \quad$Advertising expense	+	14,100
$\ \quad \quad$Utilities expense	+	12,000
$\ \quad \quad\quad \quad$Total selling expenses			=	$42,400
Administrative expenses:
$\ \quad \quad$Salaries expense		$87,700
$\ \quad \quad$Utilities expense	+	11,400
$\ \quad \quad$Office supplies expense	+	5,600
$\ \quad \quad\quad \quad$Total administrative expenses			+	$104,700
Total selling and administrative expenses			=	$147,100

**Headgear**
**Selling and Administrative Cost Budget**
Selling expenses:
$\ \quad \quad$Sales commissions expenses		$129,200
$\ \quad \quad$Advertising expense	+	60,800
$\ \quad \quad$Travel expense – selling	+	6,300
$\ \quad \quad$Telephone expense – selling	+	4,100
$\ \quad \quad\quad \quad$Total selling expenses			=	$200,400
Administrative expenses:
$\ \quad \quad$Office salaries expense		$22,700
$\ \quad \quad$Depreciation expense – office equipment	+	2,600
$\ \quad \quad$Telephone expense – administrative	+	900
$\ \quad \quad$Office supplies expense	+	800
$\ \quad \quad$Miscellaneous administrative expense	+	700
$\ \quad \quad\quad \quad$Total administrative expenses			+	27,700
Total selling and administrative expenses			=	$228,100

Selling expenses:
\(\ \quad \quad\)Sales commissions expenses		$16,300
\(\ \quad \quad\)Advertising expense	+	14,100
\(\ \quad \quad\)Utilities expense	+	12,000
\(\ \quad \quad\quad \quad\)Total selling expenses			=	$42,400
Administrative expenses:
\(\ \quad \quad\)Salaries expense		$87,700
\(\ \quad \quad\)Utilities expense	+	11,400
\(\ \quad \quad\)Office supplies expense	+	5,600
\(\ \quad \quad\quad \quad\)Total administrative expenses			+	$104,700
Total selling and administrative expenses			=	$147,100