Swingers Company Makes and Sells Widgets Expenses Are Paid in the Month Incurred

question 156

Multiple Choice

Swingers 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: $$\begin{array} { l c c } \begin{array} { l } \\\end{array} \\\text { Variable Cost } \\\underline{\text { Item} } &\underline{ \text { Per Unit Sold }} &\underline{\text { Monthly Fixed Cost }} \\\text { Sales commissions } & \$ 1 & \$ 5,000 \\\text { Shipping } & \$ 3 & \\\text { Advertising } & \$ 4 & \\\text { Executive salaries } & & \$ 60,000 \\\text { Depreciation on office equipment } & & \$ 2,000 \\\text { Other } & \$ 2 & \$ 3,000\end{array}$$ Expenses are paid in the month incurred.If the company has budgeted to sell 40,000 widgets in October, how much is the total budgeted selling and administrative expenses for October?

• A)$470,000
• B)$70,000
• C)$465,000
• D)$400,000

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Definitions:

Initial Offer

The first proposal or bid made during negotiations.

Government

The organized system of institutions, policies, and laws through which a community or country is ruled and administered.

Express Term

A provision in a contract that is clearly articulated and agreed upon by all parties, either orally or in writing.

Warranty

A guarantee provided by a seller that the product or service offered meets certain criteria and that any defects will be fixed or compensated.