Porter Corporation Makes and Sells a Single Product Called a Yute

question 42

Multiple Choice

Porter Corporation makes and sells a single product called a Yute. The company is in the process of preparing its Selling and Administrative Expense Budget for the last quarter of the year. The following budget data are available:
All of these expenses (except depreciation) are paid in cash in the month they are incurred.
-If the company has budgeted to sell 12,000 Yutes in December,then the budgeted total cash disbursements for selling and administrative expenses for December would be:

• A) $237,000
• B) $485,400
• C) $248,400
• D) $478,400

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Definitions:

Board of Directors

A group of individuals elected by the shareholders of a company to oversee and make decisions on major issues and policies.

Primary Market

The market where securities are issued for the first time, allowing corporations to raise capital from investors.

Securities

Marketable securities embodying equity in publicly-operated corporations, claims of debt owed by governments or firms through bonds, or opportunities for ownership via options.

Original Sale

The first sale of an item or property after its initial acquisition or production.