1) Kapital, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $45,000 in January, $55,000 in February, and $65,000 in March. Variable and fixed selling and administrative expenses are as follows: Variable Expenses: Power cost (40% of sales) Miscellaneous expenses: (10% of sales) Fixed Expenses: Salary expense: $10,000 per month Rent expense: $4,000 per month Depreciation expense: $1,400 per month Power cost/fixed portion: $800 per month Miscellaneous expenses/fixed portion: $1,000 per month Calculate total selling and administrative expenses for the month of January.
|Calculation of total selling & administrative expenses|
|Power cost (45000*40%)||18000|
|Miscelleneous expenses (45000*10%)||$4,500|
|Total variable S & A expenses V||22500|
|Total fixed S & A expenses F||$17,200|
|Total selling and administrative exp V+F||$39,700||ans|
|If any doubt please comment. If satisfied you can rate the answer|
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