What Is the Total Amount of S&A Expenses for the

question 152

Multiple Choice

$\begin{array}{lrrr}&\text { October}&\text { November }&\text { December }\\\text { Budgeted S\&A Expenses }\\\text { Salary Expense } & 10,000 & 10,500 & 11,000 \\\text { Sales Commissions } 5 \% \text { of Sales } & 5,000 & 5,500 & 5,300 \\\text { Insurance Expense } & 2,000 & 2,000 & 2,000 \\\text { Rent } & 2,400 & 2,400 & 2,400 \\\text { Depreciation on equipment } & 1,500 & 1,500 & 1,500 \\\text { Utilities } & \underline{1,100}& \underline{1,300} & \underline{ 1,500}\\\text { Total Operating Expenses } & \underline{22,000} & \underline{ 23,200} & \underline{23,700}\\\text {Schedule of Cash Payments for S\&A }\\\text {Expenses}\\\text { Salary Expense } & ? & 10,500&? \\100 \% \text { of Prior Month Sales Commissions } & 5,100 & ?&? \\\text { Insurance Expense } & 2,000 & 2,000 &2,000\\\text { Rent } & ? & ?&? \\100 \% \text { of Prior Months Utilities Expense } & \underline{1,200} & \underline{\quad ? }& \underline{\quad?}\\\text { Total Payments for S\&A Expenses } & ? & ?&?\end{array}$

What is the total amount of S&A expenses for the fourth quarter that the company will report on its pro forma income statement?

• A) $64,400
• B) $68,900
• C) $23,700
• D) $63,900

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Definitions:

Management Activities

Tasks and responsibilities undertaken by managers to plan, organize, lead, and control the operations of an organization.

Government Regulations

Legal rules established by government bodies intended to control and supervise certain activities or behaviors within a society.