Dantuono Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During November, the company budgeted for 7,700 units, but its actual level of activity was 7,720 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for November:
-The selling and administrative expenses in the planning budget for November would be closest to:
A) $30,490
B) $29,974
C) $30,504
D) $29,896

Question

Dantuono Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During November, the company budgeted for 7,700 units, but its actual level of activity was 7,720 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for November: 
-The selling and administrative expenses in the planning budget for November would be closest to:
A) $30,490 
B) $29,974 
C) $30,504 
D) $29,896

Quizplus · Accepted Answer

The selling and administrative expenses in the planning budget for November would be closest to $30,490. This is because the selling and administrative expenses are typically around 10% of sales, and sales for November are budgeted to be $304,900.

Dantuono Corporation Manufactures and Sells a Single Product