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

question 21

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: $\begin{array}{lcr} &\underline{ \text { Variable Cost Per Unit Sold }} &\underline{ \text { Monthly Fixed Cost }} \\\text { Sales commissions } & \$ 0.60 & \$ 6,000 \\\text { Shipping } & 1.20 & \\\text { Advertising } & 0.30 & \\\text { Executive salaries } & & 40,000 \\\text { Depreciation on office equipment } & & 8,000\\\text { Other }& 0.35 & 28,000\end{array}$
Expenses are paid in the month incurred.If the company has budgeted to sell 8000 umbrellas in October how much is the total budgeted variable selling and administrative expenses for October?

• A)$16800
• B)$18400
• C)$101600
• D)$19600

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Definitions:

Routine Work

Tasks or activities that are repetitive and predictable, requiring minimal creativity or problem-solving skills.

Structure

The arrangement or organization of interrelated elements in a material object or system, often referring to the way parts are positioned and interact within a whole.

Formalization

The extent to which rules, procedures, protocols, and guidelines are written and explicitly enforced within an organization.

Organizational Size

A measure of a company based on factors such as the number of employees, total sales, or market capitalization.