The Following Budget Information Is Available for the Arch Company

question 142

Multiple Choice

The following budget information is available for the Arch Company for January Year 2: $$\begin{array} { l c } \text { Sales } & \$ 860,000 \\\text { Cost of goods sold } & 540,000 \\\text { Utilities expense } & 2,800 \\\text { Administrative salaries } & 100,000 \\\text { Sales commissions } & 5 \% \text { of sales } \\\text { Advertising } & 20,000 \\\text { Depreciation on store equipment } & 50,000 \\\text { Rent on administration building } & 60,000 \\\text { Miscellaneous administrative expenses } & 10,000\end{array}$$ All operating expenses are paid in cash in the month incurred.Compute the total budgeted selling and administrative expenses (excluding interest) amount for January Year 2.

• A) $262,500
• B) $283,000
• C) $240,000
• D) $285,800

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