Monroe Company has developed the quarterly sales budget for the upcoming year that appears below:
The company's variable selling and administrative expenses consist of a 5% selling commission paid on sales revenues plus shipping expenses of $3 per unit. Fixed annual selling and administrative costs consisting of executive salaries, advertising, and depreciation occur evenly throughout the year and are budgeted at a total of $126,000. In addition, the company will make insurance payments of $7,500 in each of the first and third quarters. What amount of selling and administrative expense will Monroe budget for the third quarter?
A) $103,400
B) $102,900
C) $27,800
D) $110,400

Question

Monroe Company has developed the quarterly sales budget for the upcoming year that appears below:
 The company's variable selling and administrative expenses consist of a 5% selling commission paid on sales revenues plus shipping expenses of $3 per unit. Fixed annual selling and administrative costs consisting of executive salaries, advertising, and depreciation occur evenly throughout the year and are budgeted at a total of $126,000. In addition, the company will make insurance payments of $7,500 in each of the first and third quarters. What amount of selling and administrative expense will Monroe budget for the third quarter?
A) $103,400 
B) $102,900 
C) $27,800 
D) $110,400

Quizplus · Accepted Answer

The Answer of Monroe Company has developed the quarterly sales budget for the upcoming year that appears below:
 The company's variable selling and administrative expenses consist of a 5% selling commission paid on sales revenues plus shipping expenses of $3 per unit. Fixed annual selling and administrative costs consisting of executive salaries, advertising, and depreciation occur evenly throughout the year and are budgeted at a total of $126,000. In addition, the company will make insurance payments of $7,500 in each of the first and third quarters. What amount of selling and administrative expense will Monroe budget for the third quarter?
A) $103,400 
B) $102,900 
C) $27,800 
D) $110,400

Monroe Company Has Developed the Quarterly Sales Budget for the Upcoming