175. Prepare a monthly flexible selling expense budget for PineTree Company for sales volumes of $300,000, $350,000, and $400,000, based on the following data:
Sales commissions6% of sales
Sales manager's salary$120,000 per month
Advertising expense$90,000 per month
Shipping expense1% of sales
Miscellaneous selling expense$4,000 per month plus 1.5% of sales
PineTree Company
Monthly Selling Expense Budget
Sales volume$300,000$350,000$400,000
Variable expense:
Sales commissions$ 18,000$ 21,000$ 24,000
Shipping expense3,0003,5004,000
Misc. selling expense4,500 5,250 6,000
Total variable expense$ 25,500 $ 29,750 $ 34,000
Fixed expense:
Sales manager's salary$120,000$120,000$120,000
Advertising expense90,00090,00090,000
Misc. selling expense4,000 4,000 4,000
Total fixed expense$214,000$214,000$214,000
Total selling expense$239,500$243,750$248,000
176. Prepare a flexible budget for Cedar Jeans Company using production levels of 16,000, 18,000, and 20,000 units produced. The following is additional information necessary to complete the budget:
Variable costs:
Direct :Labor ($6.00 per unit)
Direct Materials ($8.00 per unit)
Variable Manufacturing Costs ($2.50 per unit)
Fixed costs:
Supervisor’s Salaries$80,000
Rent12,000
Depreciation On Equipment24,000
Cedar Jeans Company
Flexible Budget
For the Year Ended December 31, 20--