Exercise 6 (Selling and Administrative Budget)
The budgeted unit sales of Helene Company for the upcoming fiscal year are
provided below:
1stquarter 2ndquarter 3rd quarter 4th quarter
Budgeted unit sales..... 12,000 14,000 11,000 10,000
The company's variable selling and administrative expenses per unit are P2.75.
Fixed selling and administrative expenses include advertising expenses of
P12,000 per quarter, executive salaries of P40,000 per quarter, and depreciation
of P16,000 per quarter. In addition, the company will make insurance payments
of P6,000 in the 2nd Quarter and P6,000 in the 4thQuarter. Finally, property
taxes of P6,000 will be paid in the 3rd Quarter.
Required:
Prepare the company's selling and administrative expense budget for the
upcoming fiscal year.