Waterway Industries makes and sells umbrellas. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available: Variable Cost Per Unit Sold Monthly Fixed Cost Sales commissions $0.60 $ 5500 Shipping 1.20 Advertising 0.30 Executive salaries 42000 Depreciation on office equipment 8300 Other 0.35 30000 Expenses are paid in the month incurred. If the company has budgeted to sell 8000 umbrellas in October, how much is the total budgeted variable selling and administrative expenses for October?

$19,600

Explanation:

Waterway Industries

Total budget variable selling and administrative

Sales commissions$0.60

Shipping1.20

Advertising0.30

0thers 0.35

Total 2.25

Hence:

2.45 ×8,000

=$19,600

Therefore the total budgeted variable selling and administrative expenses for October will be 19,600

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