Mia is working on her department's budgeted annual income statement. In the process, she needs to determine the budgeted amount for selling, general, and administrative (SG&A) expenses in order to complete her budget.
On the basis of the given data, what are total budgeted selling, general, and administrative (SG&A) expenses of the department?

Question

Mia is working on her department's budgeted annual income statement. In the process, she needs to determine the budgeted amount for selling, general, and administrative (SG&A) expenses in order to complete her budget.
 On the basis of the given data, what are total budgeted selling, general, and administrative (SG&A) expenses of the department?

Quizplus · Accepted Answer

Total Budgeted SG&A Costs = (Budgeted Sales Volume × Budgeted Variable SG&A Cost per Unit) + Budgeted Fixed SG&A Costs = (12,000 × $0.20) + ($6,000 + $8,000 + $25,000) = $2,400 + $39,000 = $41,400.

Mia Is Working on Her Department's Budgeted Annual Income Statement