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DeWitt Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from$170,000 to $200,000 Variable costs and their percentage relationship to sales are


E10-5 DeWitt Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from$170,000 to $200,000 Variable costs and their percentage relationship to sales are:
Sales commissions
6%
Advertising
4%
Traveling
3%
Delivery
2%

 
Fixed selling expenses will consist of:
Sales salaries
$35,000
Depreciation on delivery equipment
7,000
Insurance on delivery equipment
1,000

Instructions
Prepare a monthly flexible budget for each $10,000 increment of sales within the relevant range for the year ending December 31, 2014.

 
TUTORIAL PREVIEW
Prepare a monthly flexible budget for each $10,000 increment of sales within the relevant range for the year ending December 31, 2014.

DEWITT COMPANY
Monthly Selling Expense Flexible Budget
For the Year 2014
Activity level
 
Sales
$170,000
$180,000
$190,000
$200,000
Variable expenses
 
Sales commission (6%)
$10,200
$10,800
$11,400
$12,000


File name: E10-5 DeWitt.xls File type: xls-template PRICE: $5