Poriss Corporation makes and sells a single product called a Yute. The company is in the process of preparing its Selling and Administrative Expense Budget for the last quarter of the year. The following budget data are available:
Variable Cost Per Yute Sold Monthly Fixed Cost
Sales Commissions $2.10
Advertising $7.40 $34,000
Executive Salaries $198,000
Other $0.60 $38,000
All of these expenses are paid in cash in the month they are incurred. If the company has budgeted to sell 19,000 Yutes in November, the the total budgeted selling and administrative expenses for November would be:
The answer is $ 536,000. Check the calculation below
Variable cost = (2.1+3.9+7.4+0.60) * 19000 = 266,000
Fixed cost = 34000+198000+38000 = ...
The solution calculates total budgeted selling and administrative expenses for Poriss Corp.