Pease Company's expected sales for April are $27,600.Information about other budgeted expenses is presented below. $\begin{array}{lr}
\text { Budgeted } & \text { Expenses per Month } \
\text { Wages } & \$ 2,000 \
\text { Advertising } & 1,680 \
\text { Depreciation } & 1,440 \
\text { Rent } & 2,560 \
\text { Other } & 5 \% \text { of sales }
\end{array}$ _____ is the expected total expenses for the month of April.
A)$9,060
B)$7,680
C)$6,240
D)$7,620

Question

Quizplus · Accepted Answer

The total expected expenses for April are calculated by adding the fixed expenses (wages, advertising, depreciation, rent) and the variable expense (5% of sales). Fixed expenses total $2,000 + $1,680 + $1,440 + $2,560 = $7,680. The variable expense is 5% of $27,600, which equals $1,380. Adding the fixed and variable expenses gives $7,680 + $1,380 = $9,060.

Pease Company's Expected Sales for April Are $27,600 _____ Is the Expected Total Expenses for the Month of Budgeted