Webster Corporation's monthly projected general and administrative expenses include $5,000 administrative salaries, $2,400 of other cash administrative expenses, $1,350 of depreciation expense on the administrative equipment, and 0.5% monthly interest on an outstanding bank loan of $10,000. Compute the total general and administrative expenses to be reported on the general and administrative expense budget per month.
A) $17,400.
B) $7,400.
C) $8,750.
D) $5,050.
E) $8,800.

Question

Quizplus · Accepted Answer

- Administrative salaries: $5,000
- Other cash administrative expenses: $2,400
- Depreciation expense on administrative equipment: $1,350
- Monthly interest on bank loan of $10,000 at 0.5%: $50

Total general and administrative expenses = $5,000 + $2,400 + $1,350 + $50 = $8,800

Therefore, the correct answer is C) $8,750.

Webster Corporation's Monthly Projected General and Administrative Expenses Include $5,000