Whitaker Company budgets payroll at $3,000 per month plus a percentage of monthly sales. The June operating expense budget includes total payroll of $10,500 with budgeted sales of $150,000. Sales for July are budgeted at $165,000, while purchases of inventory for July are budgeted at $85,000.
Depreciation and insurance for July are estimated at $750 and $500, respectively. Expenses related to purchasing inventory are budgeted at 5% of purchases for the month. The purchase of $3,000 in equipment and $1,200 in furniture is expected in July.
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If the percentage used to budget the variable portion of payroll increased 20%, what is the total payroll budgeted for July?

Question

Whitaker Company budgets payroll at $3,000 per month plus a percentage of monthly sales. The June 	operating expense budget includes total payroll of $10,500 with budgeted sales of $150,000. Sales for 	July are budgeted at $165,000, while purchases of inventory for July are budgeted at $85,000.
Depreciation and insurance for July are estimated at $750 and $500, respectively. Expenses related to purchasing inventory are budgeted at 5% of purchases for the month. The purchase of $3,000 in equipment and $1,200 in furniture is expected in July.
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If the percentage used to budget the variable portion of payroll increased 20%, what is the total payroll budgeted for July?

Quizplus · Accepted Answer

The Answer of Whitaker Company budgets payroll at $3,000 per month plus a percentage of monthly sales. The June 	operating expense budget includes total payroll of $10,500 with budgeted sales of $150,000. Sales for 	July are budgeted at $165,000, while purchases of inventory for July are budgeted at $85,000.
Depreciation and insurance for July are estimated at $750 and $500, respectively. Expenses related to purchasing inventory are budgeted at 5% of purchases for the month. The purchase of $3,000 in equipment and $1,200 in furniture is expected in July.
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If the percentage used to budget the variable portion of payroll increased 20%, what is the total payroll budgeted for July?

Whitaker Company Budgets Payroll at $3,000 Per Month Plus a Percentage