Asked by Imani Devaughn on May 03, 2024
Verified
If the company has budgeted to sell 16,000 Debs in January, then the total budgeted variable selling and administrative expenses for January will be:
A) $17,600
B) $25,600
C) $40,000
D) $36,800
Variable Selling Expenses
Costs that fluctuate in direct proportion to changes in sales volume, such as commissions and shipping charges.
Administrative Expenses
Costs related to the general operation of a business, such as salaries of executive personnel, accounting, and human resources.
- Understand the components and calculations involved in preparing budgeted selling and administrative expenses.
Verified Answer
CE
Christine EliasMay 07, 2024
Final Answer :
C
Explanation :
The budgeted variable selling and administrative expenses for each Deb is $2.50 ($1.50 variable selling expenses + $1 variable administrative expenses). Therefore, the total budgeted variable selling and administrative expenses for 16,000 Debs is 16,000 x $2.50 = $40,000.
Explanation : 
Budgeted variable selling and administrative expense = $2.50 per unit × 16,000 units = $40,000
Budgeted variable selling and administrative expense = $2.50 per unit × 16,000 units = $40,000
Learning Objectives
- Understand the components and calculations involved in preparing budgeted selling and administrative expenses.