Warshaw Company Budgets Payroll at $3,600 Per Month Plus a Percentage

question 179

Multiple Choice

Warshaw Company budgets payroll at $3,600 per month plus a percentage of monthly sales. The June operating expense budget includes total payroll of $13,200 with budgeted sales of $160,000. Sales for July are budgeted at $180,000 while purchases of inventory for July are budgeted at $95,000. Depreciation and insurance for July are estimated at $1,000 and $600, respectively. Office and administrative expenses related to purchasing inventory are budgeted at 10% of purchases for the month. The purchase of $2,500 in equipment and $1,500 in furniture is expected in July. The July payroll should be budgeted at

• A)$14,400.
• B)$13,200.
• C)$22,500.
• D)$15,300.

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Definitions:

Truth Wins

The belief that truth or accurate information will ultimately prevail in the exchange of ideas, commonly referenced in discussions of free speech and marketplace of ideas.

Group Decision Making

The process of making choices or decisions as a group, rather than individually, often incorporating diverse opinions and expertise.

Fairness

The quality of making judgments that are free from discrimination or favoritism, ensuring equitable treatment for all parties involved.

Effectiveness

A measure of the degree to which objectives are achieved and desired results are obtained.