The Following Budget Information Is Available for the Arch Company

question 147

Multiple Choice

The following budget information is available for the Arch Company for January Year 2: $\begin{array}{llr} \text { Sales } &\$860,000\\ \text { Cost of goods sold } &540,000\\ \text { Utilities expense } &2,800\\ \text {Administrative salaries } &100,000\\ \text { Sales commissions } & \text {\( 5 \% \) of Sales}\\ \text { Advertising } &20,000\\ \text { Depreciation on store equipment } &50,000\\ \text {Rent on administration building } &60,000\\ \text { Miscellaneous administrative expenses} &10, 000\\\end{array}$
All operating expenses are paid in cash in the month incurred. Compute the total budgeted selling and administrative expenses (excluding interest) amount for January Year 2.

• A) $262,500
• B) $283,000
• C) $240,000
• D) $285,800

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Definitions:

Integral ABS Systems

Advanced braking systems in vehicles that integrate Anti-lock Braking System (ABS) functionality into the vehicle's overall brake control system for improved safety.

Pedal Reserve

The distance or amount of pedal movement remaining after the brake pedal has been depressed to a point where the brakes engage.

Pedal Travel

The distance the brake or clutch pedal moves from its rest position to the point of engagement.

Integral Rear Calipers

Brake calipers located at the rear of a vehicle that are integrated with other brake system components to enhance braking efficiency.