Comma CoMakes and Sells Widgets Expenses Are Paid in the Month Incurred

question 64

Multiple Choice

Comma Co.makes and sells widgets.The company is in the process of preparing its selling and administrative expense budget for the month.The following budget data are available: $\begin{array}{lcr} \underline{ \text {tem }} &\underline{ \text { Variable Cost Per Unit Sold }} &\underline{ \text { Monthly Fixed Cost }} \\\text { Sales commissions } & \$ 1 & \$ 10,000 \\\text { Shipping } & \$3 & \\\text { Advertising } & \$4 & \\\text { Executive salaries } & & \$120,000\\\text { Depreciation on office equipment } & & \$4,000\\\text { Other }&\$2&\$6,000\end{array}$
Expenses are paid in the month incurred.If the company has budgeted to sell 80000 widgets in October how much is the total budgeted selling and administrative expenses for October?

• A)$940000
• B)$140000
• C)$930000
• D)$800000

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Definitions:

Elaboration Failure

The inability to add detail or supplement information to a memory or concept, often leading to a lack of depth in understanding or recall.

Retroactive Interference

A process where new information interferes with the ability to recall older information.

Proactive Interference

The phenomenon where older memories hinder the recall of newly learned information.

Retroactive Interference

A phenomenon where new memories disrupt the recall of previously formed memories.