The Ferguson Company Makes and Sells a Single Product If the Sales Budget Indicates That 120,000 Units Will Be

question 14

Multiple Choice

The Ferguson Company makes and sells a single product.The company has estimated the following costs in order to prepared their selling and administrative expenses budget for 2013: $\begin{array}{ll}&\text { Variable Cost per }& \text { Fixed Costs }\\& \text { Unit Sold } \\\text { Sales Commission } & \$ .40&-- \\\text { Shipping } & \$ .60&-- \\\text { Advertising } & \$ .30&\$35,000 \\\text { Depreciation on Office Equipment } & -&\$16,000 \\\text { Other } & \$ .35&\$96,000\end{array}$ If the sales budget indicates that 120,000 units will be sold in 2013, the total budgeted selling and administrative expenses will be:

• A)$329,000
• B)$345,000
• C)$198,000
• D)$147,000

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