Porter Corporation makes and sells a single product called a Yute. The company is in the process of preparing its Selling and Administrative Expense Budget for the last quarter of the year. The following budget data are available: All of these expenses (except depreciation) are paid in cash in the month they are incurred.
If the company has budgeted to sell 14,000 Yutes in November, then the total budgeted selling and administrative expenses for November would be:

Question

Porter Corporation makes and sells a single product called a Yute. The company is in the process of preparing its Selling and Administrative Expense Budget for the last quarter of the year. The following budget data are available:  All of these expenses (except depreciation) are paid in cash in the month they are incurred.
If the company has budgeted to sell 14,000 Yutes in November, then the total budgeted selling and administrative expenses for November would be:

Quizplus · Accepted Answer

11eacbfc_c602_54e6_8ffe_fd429b55b6e2_TB7552_00 Total selling and administrative expenses = Fixed selling and administrative expenses + (Variable selling and administrative expenses per unit × Units sold)
= $237,000 + ($20.70 per unit × 14,000 units)
= $237,000 + $289,800
= $526,800

Porter Corporation Makes and Sells a Single Product Called a Yute