Webster Corporation's monthly projected general and administrative expenses include $5,000 administrative salaries,$2,400 of other cash administrative expenses,$1,350 of depreciation expense,and 0.5% monthly interest on an outstanding bank loan of $10,000.Compute the total general and administrative expenses to be reported on the general and administrative expense budget per month.
A)$17,400.
B)$7,400.
C)$7,450.
D)$5,050.
E)$8,800.

Question

Quizplus · Accepted Answer

The total general and administrative expenses can be calculated as follows:
$5,000 (administrative salaries) + $2,400 (other cash administrative expenses) + $1,350 (depreciation expense)+ $50 (0.5% of $10,000 outstanding bank loan) = $7,800
Therefore, the total general and administrative expenses to be reported on the general and administrative expense budget per month is $7,450.

Webster Corporation's Monthly Projected General and Administrative Expenses Include $5,000