Bigelow Company Budgets Payroll at $4,000 Per Month Plus a Percentage

Bigelow Company budgets payroll at $4,000 per month plus a percentage of monthly sales.The June operating expense budget includes total payroll of $12,000 with budgeted sales of $160,000.Sales for July are budgeted at $180,000 while purchases of inventory for July are budgeted at $95,000.Depreciation and insurance for July are estimated at $1,000 and $600,respectively.Office and administrative expenses related to purchasing inventory are budgeted at 10% of purchases for the month.The purchase of $2,500 in equipment and $1,500 in furniture is expected in July.
- If the percentage of monthly sales used in budgeting payroll increases 25%,what would the total payroll budgeted for July be?

A) $15,250
B) $11,250
C) $13,000
D) $18,500