Flexible Budget for Selling and Administrative Expenses for a Service Company Digital Solutions Inc. uses...

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Accounting

Flexible Budget for Selling and Administrative Expenses for a Service
Company
Digital Solutions Inc. uses flexible budgets that are based on the
following data:
Line Item Description
Sales commissions
Advertising expense
Miscellaneous administrative expense
Office salaries expense
Customer support expenses
Research and development expense
Value
9% of sales
17% of sales
$8,500 per month plus 4% of sales
$47,000 per month
$15,000 per month plus 27% of sales
$78,000 per month
Digital Solutions Inc.
Flexible Selling and Administrative Expenses Budget
For the Month Ending October 31
Variable cost:
Advertising expense
Miscellaneous administrative expense
Customer support expenses
Total variable cost
Fixed cost:
Customer support expenses
Research and development expense
Total fixed cost
Total selling and administrative expenses
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