Priceless Memories Company
Priceless Memories Company manufactures toy trains.Information on Priceless Memories Company's labor costs follow:
$\begin{array}{ll}
\text { Sales commissions } & \$ 6 \text { per train } \
\text { Administration } & \$ 12,000 \text { per month } \
\text { Indirect factory labor } & \$ 4 \text { per train } \
\text { Direct factorylabor } & \$ 6 \text { per train }
\end{array}$

The following information applies to the upcoming month of July for Priceless Memories Company:
Budgeted production 1,500 unit:
Budgeted sales 1,300 unit:

Refer to Priceless Memories Company.What amount of budgeted labor cost would appear in the July selling,general,and administrative expense budget?

Question

Priceless Memories Company
Priceless Memories Company manufactures toy trains.Information on Priceless Memories Company's labor costs follow:
$\begin{array}{ll}
\text { Sales commissions } & \$ 6 \text { per train } \
\text { Administration } & \$ 12,000 \text { per month } \
\text { Indirect factory labor } & \$ 4 \text { per train } \
\text { Direct factorylabor } & \$ 6 \text { per train }
\end{array}$

The following information applies to the upcoming month of July for Priceless Memories Company:
Budgeted production                   1,500 unit:
Budgeted sales                              1,300 unit:

Refer to Priceless Memories Company.What amount of budgeted labor cost would appear in the July selling,general,and administrative expense budget?

Quizplus · Accepted Answer

The selling, general, and administrative expense budget includes sales commissions and administration costs. Sales commissions are $6 per train for 1,300 units, totaling $7,800 ($6 * 1,300). Administration costs are $12,000 per month. Adding these together gives $19,800 ($7,800 + $12,000).

Priceless Memories Company Priceless Memories Company Manufactures Toy Trains The Following Information Applies to the Upcoming Month of July

Priceless Memories Company
Priceless Memories Company Manufactures Toy Trains The Following Information Applies to the Upcoming Month of July