Danzi, Inc., has budgeted sales for the month of July and estimated cost behavior patterns for a number of its expenses listed below. From this information prepare an operating expense budget for the month of July. $\begin{array} { l c r }
\text { Budgeted sales revenue } & \$ 230,000 \
\text { Budgeted sales } & 4,600 \text { units } \
\text { Budgeted production } & 4,900 \text { units } \
\quad \text { (Partial listing of expense items): } & \
\text { Sales commission } & 5 \% \text { of sales } \
\text { Sales salaries } & \$6, 800 \
\text { Production supervisor salaries } & 7,600 \
\text { Administrative salaries } & 9,400 \
\text { Administrative expense } & 8,000 \
\text { Marketing promotions } & \$ 0.75 \text { per unit } \
\text { Depreciation on plant equipment } & \$5 , 000 \
\text { Depreciation on office equipment } & 2,500 \
\text { Raw materials used } & \$ 7.50 \text { per unit } \
\text { Advertising } & \$ 4,200\
\text { Delivery expense } & \$ 0.50 \text { per unit } \
\text { Bad debt expense } &1 \% \text { of sales } \
\text { Property taxes on plant } & \$ 5,000 \
\text { Property taxes on office }&3,000
\end{array}$

Question

Danzi, Inc., has budgeted sales for the month of July and estimated cost behavior patterns for a number of its expenses listed below. From this information prepare an operating expense budget for the month of July. $\begin{array} { l c r } 
\text { Budgeted sales revenue } & \$  230,000 \
\text { Budgeted sales } & 4,600 \text { units } \
\text { Budgeted production } & 4,900 \text { units } \
\quad \text { (Partial listing of expense items): } & \
\text { Sales commission } & 5 \% \text { of sales } \
\text { Sales salaries } & \$6, 800 \
\text { Production supervisor salaries } & 7,600 \
\text { Administrative salaries } & 9,400 \
\text { Administrative expense } & 8,000 \
\text { Marketing promotions } & \$ 0.75 \text { per unit } \
\text { Depreciation on plant equipment } & \$5 , 000 \
\text { Depreciation on office equipment } & 2,500 \
\text { Raw materials used } & \$ 7.50 \text { per unit } \
\text { Advertising } & \$  4,200\
\text { Delivery expense } & \$ 0.50 \text { per unit }  \
\text { Bad debt expense } &1 \% \text { of sales } \
\text { Property taxes on plant } & \$  5,000 \
\text { Property taxes on office }&3,000
\end{array}$

Quizplus · Accepted Answer

The Answer of Danzi, Inc., has budgeted sales for the month of July and estimated cost behavior patterns for a number of its expenses listed below. From this information prepare an operating expense budget for the month of July. $\begin{array} { l c r } 
\text { Budgeted sales revenue } & \$  230,000 \
\text { Budgeted sales } & 4,600 \text { units } \
\text { Budgeted production } & 4,900 \text { units } \
\quad \text { (Partial listing of expense items): } & \
\text { Sales commission } & 5 \% \text { of sales } \
\text { Sales salaries } & \$6, 800 \
\text { Production supervisor salaries } & 7,600 \
\text { Administrative salaries } & 9,400 \
\text { Administrative expense } & 8,000 \
\text { Marketing promotions } & \$ 0.75 \text { per unit } \
\text { Depreciation on plant equipment } & \$5 , 000 \
\text { Depreciation on office equipment } & 2,500 \
\text { Raw materials used } & \$ 7.50 \text { per unit } \
\text { Advertising } & \$  4,200\
\text { Delivery expense } & \$ 0.50 \text { per unit }  \
\text { Bad debt expense } &1 \% \text { of sales } \
\text { Property taxes on plant } & \$  5,000 \
\text { Property taxes on office }&3,000
\end{array}$