Shep Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first quarter of 2016, the following data are developed: 1. Sales: 20,000 units; unit selling price: $30
2. Variable costs per dollar of sales:
Sales commissions 6%
Delivery expense 2%
Advertising 4%
3. Fixed costs per quarter:
Sales salaries $24,000
Office salaries 19,000
Depreciation 6,000
Insurance 2,000
Utilities 1,000
Prepare a selling and administrative expense budget for the first quarter of 2016. (List variable costs before fixed costs.)