24. audrey corporation's cost formula for its selling and administrative expense is $47,900 per month plus $52 per unit. for the month of april, the company planned for activity of 6,000 units, but the actual level of activity was 5,960 units. the actual selling and administrative expense for the month was $364,490. the selling and administrative expense in the planning budget for april would be closest to: a. $357,820 b. $359,900 c. $364,490 d. $366,936

The estimated cost for selling and administration expenses is:

47900+52*6000=$359900

Explanation:

Audrey Corporation's cost for selling and administrative expenses present fix and variable costs. They plan a fixed cost of $47,900 and a variable cost of $52 unit.

The formula is:

SandA COST= 47900+52*Q

For April they planned to sell 6000 units.

The estimated cost for selling and administration expenses is:

47900+52*6000=$359900

If the formula is accurate the real cost of selling and administration is:

47900+52*5960=$357,820

(a) when insurance is obtained through a reciprocal insurer, the insureds are sharing the risk of loss with other subscribers of that reciprocal.

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