Comma Co Makes and Sells Widgets Expenses Are Paid in the Month Incurred

question 48

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: $\begin{array}{lcc}&\text {Variable Cost Per Unit Sold}&\text {Monthly Fixed Cost}\\\text { Sales commissions } & \$1& \$10,000 \\\text { Shipping } & \$3 & \\\text { Advertising } &\$4& \\\text { Executive salaries } & &\$120,000 \\\text { Depreciation on office equipment } & & \$4,000\\\text { Other }&\$2& \$6,000\end{array}$ Expenses are paid in the month incurred. If the company has budgeted to sell 80000 widgets in October how much is the total budgeted selling and administrative expenses for October?

• A) $940000
• B) $140000
• C) $930000
• D) $800000

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Definitions:

Implementation

The process of putting plans, policies, or systems into action or effect within an organization or structure.

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A long-term advantage that a company possesses, making it more competitive than others and difficult to replicate.

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The supply of available workers in relation to available employment.

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