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Flexible Budget for Selling and Administrative Expenses

Agent Blaze uses flexible budgets that are based on the following data:

Sales commissions	6% of sales
Advertising expense	25% of sales
Miscellaneous selling expense	$1,800 plus 4% of sales
Office salaries expense	$12,000 per month
Office supplies expense	5% of sales
Miscellaneous administrative expense	$1,300 per month plus 3% of sales

Hide Prepare a flexible selling and administrative expenses budget for January 2014, for sales volumes of $80,000, $100,000, and $120,000. (Use Exhibit 5 as a model.) Enter all amounts as positive numbers. Agent Blaze Flexible Selling and Administrative Expenses Budget For the Month Ending January 31, 2014 Total sales $80,000 $100,000 $120,000 Variable cost: Sales commissions $ Correct 10 $ Correct 11 $ Correct 12 Advertising expense Correct 14 Correct 15 Correct 16 Miscellaneous selling expense Correct 18 Correct 19 Correct 20 Office supplies expense Correct 22 Correct 23 Correct 24 Miscellaneous administrative expense Correct 26 Correct 27 Correct 28 Total variable cost $ Correct 30 $ Correct 31 $ Correct 32 Fixed cost: Miscellaneous selling expense $ Correct 35 $ Correct 36 $ Correct 37 Office salaries expense Correct 39 Correct 40 Correct 41 Miscellaneous administrative expense Correct 43 Correct 44 Correct 45 Total fixed cost $ Correct 47 $ Correct 48 $ Correct 49 Total selling and administrative expenses $ Correct 51 $ Correct 52 $ Correct 53

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