Scotch,Inc

question 138

Multiple Choice

Scotch,Inc.has prepared the operating budget for the first quarter of the year.The company forecast sales of $50,000 in January,$60,000 in February,and $70,000 in March.Variable and fixed expenses are as follows: Variable Expenses:
Power cost (20% of sales)
Miscellaneous expenses: (5% of sales)
Fixed Expenses:
Salaries expense: $8,000 per month
Rent expense: $5,000 per month
Depreciation expense: $1,400 per month
Power cost/fixed portion: $500 per month
Miscellaneous expenses/fixed portion: $1,000 per month
Using the information above,calculate the amount of selling and administrative expenses for the month of February.

• A)$28,400
• B)$33,400
• C)$15,000
• D)$30,900

---

Definitions:

Emergency Calls

Phone calls made to request immediate assistance in situations of urgent need.

Confidence Interval

A spectrum of figures obtained from sample measurements which probably encloses an uncertain population parameter within a specific confidence level.

Weight Reduction

The process or result of becoming lighter in weight, often through diet, exercise, or a combination of lifestyle changes.

Confidence Interval

An assortment of values generated from sample data, considered to potentially contain the value of a non-disclosed population characteristic.