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Flexible Budget for Selling and Administrative Expenses for a Service Company Cloud Productivity Inc. uses...

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Accounting

Flexible Budget for Selling and Administrative Expenses for a Service Company

Cloud Productivity Inc. uses flexible budgets that are based on the following data:

Sales commissions 15% of sales
Advertising expense 18% of sales
Miscellaneous administrative expense $7,000 per month plus 12% of sales
Office salaries expense $29,000 per month
Customer support expenses $13,000 per month plus 20% of sales
Research and development expense $32,000 per month

Prepare a flexible selling and administrative expenses budget for March for sales volumes of $400,000, $500,000, and $600,000. (Use Exhibit 5 as a model.)

Cloud Productivity Inc.
Flexible Selling and Administrative Expenses Budget
For the Month Ending March 31
Total sales $400000 $500000 $600000
Variable cost:
$ $ $
Total variable cost $ $ $
Fixed cost:
$ $ $
Total fixed cost $ $ $
Total selling and administrative expenses $ $ $

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