Argyle Company Is Preparing the Operating Budget for the First

question 82

Multiple Choice

Argyle Company is preparing the operating budget for the first quarter of 2013. They forecast sales of $50 000 in January, $60 000 in February, and $70 000 in March. Variable and fixed expenses are as follows:
Variable: Power cost (40% of Sales)
Miscellaneous expenses (5% of Sales)
Fixed: Salary expense: $8 000 per month Rent expense: $5 000 per month
Depreciation expense: $1 200 per month Power cost/fixed portion: $800 per month
Miscellaneous expenses/fixed portion: $1 000 per month
How much is the total operating expense for February?

• A)$41 700
• B)$47 500
• C)$43 000
• D)$38 500

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Definitions:

Operant Conditioning

A method of learning that employs rewards and punishments for behavior.

Operant Conditioning

An educational method where the intensity of a behavior is adjusted by rewards or consequences.

Vicarious Learning

Learning that occurs by observing the actions and outcomes of others’ behavior, rather than through direct experience.

Rewarded

Given something, usually of value or significance, in recognition of service, effort, or achievement.