7.8: Selling and Administrative Cost Budget
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.
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Selling expenses: |
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\(\ \quad \quad\)Sales commissions expenses |
$16,300 |
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|
\(\ \quad \quad\)Advertising expense |
+ |
14,100 |
||
|
\(\ \quad \quad\)Utilities expense |
+ |
12,000 |
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|
\(\ \quad \quad\quad \quad\)Total selling expenses |
= |
$42,400 |
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|
Administrative expenses: |
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\(\ \quad \quad\)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 |
|
Selling expenses: |
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|
\(\ \quad \quad\)Sales commissions expenses |
$129,200 |
|||
|
\(\ \quad \quad\)Advertising expense |
+ |
60,800 |
||
|
\(\ \quad \quad\)Travel expense – selling |
+ |
6,300 |
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\(\ \quad \quad\)Telephone expense – selling |
+ |
4,100 |
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|
\(\ \quad \quad\quad \quad\)Total selling expenses |
= |
$200,400 |
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Administrative expenses: |
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|
\(\ \quad \quad\)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 |