The following budget information is available for the Arch Company for January Year 2: All operating expenses are paid in cash in the month incurred. Compute total budgeted selling and administrative expenses (excluding interest) amount for January Year 2.

Question

The following budget information is available for the Arch Company for January Year 2:  All operating expenses are paid in cash in the month incurred. Compute total budgeted selling and administrative expenses (excluding interest) amount for January Year 2.

Quizplus · Accepted Answer

Budgeted selling and administrative expenses = Utilities expense + Administrative salaries + Sales commissions + Advertising + Depreciation on store equipment + Rent on administrative building + Miscellaneous expenses
Budgeted selling and administrative expenses = $2,800 + $100,000 + ($860,000 × 5%) + $20,000 + $50,000 + $60,000 + $10,000 = $285,800

The Following Budget Information Is Available for the Arch Company