Question - Sheridan Company makes and sells widgets. The company is in the process of preparing its selling and administrative expense budget for the month. The following budget data are available:
|
Item
|
Variable Cost Per Unit Sold
|
Monthly Fixed Cost
|
|
Sales commissions
|
$1
|
$10000
|
|
Shipping
|
$3
|
|
|
Advertising
|
$4
|
|
|
Executive salaries
|
|
$120000
|
|
Depreciation on office equipment
|
|
$4000
|
|
Other
|
$2
|
$6000
|
Expenses are paid in the month incurred. If the company has budgeted to sell S4000 widgets in October, how much is the total budgeted selling and administrative expenses for October?
$540000
$670000
$680000
$140000