Dart, IncMakes and Sells Umbrellas Expenses Are Paid in the Month Incurred

question 82

Multiple Choice

Dart, Inc.makes and sells umbrellas.The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year.The following budget data are available: $\begin{array}{lrr}&\text { Variable Cost Per Unit Sold} &\text { Monthly Fixed Cost }\\\text { Sales commissions } & \$ 0.60 & \$ 6,000 \\\text { Shipping } & 1.20 & \\\text { Advertising } & 0.30 &\\\text { Executive salaries } && 40,000 \\\text { Depreciation on office equipment } && 8,000\\\text { Other }&0.35&28,000\end{array}$ Expenses are paid in the month incurred.If the company has budgeted to sell 8,000 umbrellas in October, how much is the total budgeted variable selling and administrative expenses for October?

• A)$16,800
• B)$18,400
• C)$101,600
• D)$19,600

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Definitions:

Discretionary Task

refers to a job or an assignment that requires personal judgment or choice in its execution, often without strict guidelines or procedures.

Process Loss

Reduction in group performance compared to individual performance, often due to coordination and motivation problems.

Steiner's Taxonomy

is a classification system for group tasks developed by Ivan Steiner, categorizing them based on their nature, such as additive, disjunctive, conjunctive, and compensatory.

Group's Product

The outcome, idea, or solution generated through collaborative efforts within a group.