Miller company's budgeted variable selling and administrative expenses are $8.50 per unit sold.
Miller's budgeted sales are 5,000 units during April, and budgeted selling and administrative fixed
Costs are $47,000 for the month, which includes depreciation expense of $7,000. What are Miller's
Budgeted cash disbursements for selling and administrative expenses?

Question

Quizplus · Accepted Answer

The budgeted cash disbursements for selling and administrative expenses are calculated by adding the variable expenses to the fixed costs, excluding non-cash items like depreciation. Variable expenses are $8.50 per unit for 5,000 units, totaling $42,500. Fixed costs are $47,000, but we subtract the non-cash depreciation expense of $7,000, resulting in $40,000. Adding these together gives $82,500.

Miller Company's Budgeted Variable Selling and Administrative Expenses Are $8