The Year 1 selling expense budget for Apple Corporation is as follows:
$$\begin{array} { l r }
\text { Budgeted sales } & \underline{ \$ 275,000} \
\text { Selling costs: } & \
\quad \text { Delivery expenses } & \$ 2,750 \
\quad \text { Commission expenses } & 5,500 \
\quad \text { Advertising expenses } & 2,500 \
\quad \text { Office expenses } & 1,500 \
\quad \text { Miscellaneous expenses } & \underline{5,300} \
\text { Total } & \underline{ \underline{\$ 17,550}}
\end{array}$$ Delivery and commission expenses vary proportionally with budgeted sales in dollars. Advertising and office expenses are fixed. Miscellaneous expenses include $2,000 of fixed costs. The rest varies with budgeted sales in dollars. The budgeted sales for Year 2 are $330,000.
What will be the value of miscellaneous expenses in the Year 2 selling expense budget?

Question

The Year 1 selling expense budget for Apple Corporation is as follows:
$$\begin{array} { l r } 
\text { Budgeted sales } & \underline{ \$ 275,000} \
\text { Selling costs: } & \
\quad \text { Delivery expenses } & \$ 2,750 \
\quad \text { Commission expenses } & 5,500 \
\quad \text { Advertising expenses } & 2,500 \
\quad \text { Office expenses } & 1,500 \
\quad \text { Miscellaneous expenses } &  \underline{5,300} \
\text { Total } &  \underline{ \underline{\$ 17,550}}
\end{array}$$ Delivery and commission expenses vary proportionally with budgeted sales in dollars. Advertising and office expenses are fixed. Miscellaneous expenses include $2,000 of fixed costs. The rest varies with budgeted sales in dollars. The budgeted sales for Year 2 are $330,000.
What will be the value of miscellaneous expenses in the Year 2 selling expense budget?

Quizplus · Accepted Answer

The Answer of The Year 1 selling expense budget for Apple Corporation is as follows:
$$\begin{array} { l r } 
\text { Budgeted sales } & \underline{ \$ 275,000} \
\text { Selling costs: } & \
\quad \text { Delivery expenses } & \$ 2,750 \
\quad \text { Commission expenses } & 5,500 \
\quad \text { Advertising expenses } & 2,500 \
\quad \text { Office expenses } & 1,500 \
\quad \text { Miscellaneous expenses } &  \underline{5,300} \
\text { Total } &  \underline{ \underline{\$ 17,550}}
\end{array}$$ Delivery and commission expenses vary proportionally with budgeted sales in dollars. Advertising and office expenses are fixed. Miscellaneous expenses include $2,000 of fixed costs. The rest varies with budgeted sales in dollars. The budgeted sales for Year 2 are $330,000.
What will be the value of miscellaneous expenses in the Year 2 selling expense budget?

The Year 1 Selling Expense Budget for Apple Corporation Is