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Bigelow Company budgets payroll at $4,000 per month plus a percentage of monthly ...

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Accounting

Bigelow Company budgets payroll at $4,000 per month plus a percentage of monthly
sales. The June operating expense budget includes total payroll of $12,000 with
budgeted sales of $160,000. Sales for July are budgeted at $180,000 while purchases
of inventory for July are budgeted at $95,000. Depreciation and insurance for July are
estimated at $1,000 and $600, respectively. Office and administrative expenses related
to purchasing inventory are budgeted at 10% of purchases for the month. The purchase
of $2,500 in equipment and $1,500 in furniture is expected in July.
A. What is the July payroll at Bigelow Company should be budgeted at?
B. What are the total operating expenses at Bigelow Company budgeted for July
are?
C. If the Bigelow Company percentage of monthly sales used in budgeting payroll
increases by 20%, what would the total payroll budgeted for July be?
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