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Duncan Company combines its operating expenses for budget purposes in a selling and administrative expense...

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Accounting

Duncan Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2014, the following data are available.

1. Sales: 20,900 units quarter 1; 22,900 units quarter 2.
2. Variable costs per dollar of sales: Sales commissions 5%, delivery expense 2%, and advertising 4%.
3. Fixed costs per quarter: Sales salaries $10,300, office salaries $6,310, depreciation $4,390, insurance $1,950, utilities $830, and repairs expense $670.
4. Unit selling price: $24.

Prepare a selling and administrative expense budget by quarters for the first 6 months of 2014. (List variable expenses before fixed expense.) image

DUNCAN COMPANY Selling and Administrative Expense Budget For the Six Months Ending June 30, 2014 Quarter Six Months

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