Comma CoMakes and Sells Widgets Expenses Are Paid in the Month Incurred

question 154

Multiple Choice

Comma Co.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: $\begin{array}{lll}\text { Item }&\text { Variable Cost Per Unit Sold }&\text { Monthly Fixed Cost }\\\text { Sales commissions } & \$ 1 & \$ 10,000 \\\text { Shipping } & \$ 3 & \\\text { Advertising } & \$ 4 &\\\text { Executive salaries } & & \$ 120,000 \\\text { Depreciation on office equipment } & & \$ 4,000 \\\text { Other } & \$ 2 & \$ 6,000\end{array}$ Expenses are paid in the month incurred.If the company has budgeted to sell 80,000 widgets in October, how much is the total budgeted selling and administrative expenses for October?

• A)$940,000
• B)$140,000
• C)$930,000
• D)$800,000

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Definitions:

Performance Standards

Established criteria against which an employee's work behavior and outputs are measured.

Unjust Dismissal

Termination of an employee's contract or employment without fair reason or without following due legal or contractual process.

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