Pearl, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $45,000 in January, $55,000 in February, and $65,000 in March. Variable and fixed selling and administrative expenses are as follows: Variable Expenses: Power cost Miscellaneous expenses Fixed Expenses: Salaries expense Rent expense Depreciation expense Power cost/fixed portion Miscellaneous expense/fixed portion OA. $35,300 OB. $40,300 OC. $22,500 OD. $45,300 (40% of sales) (10% of sales) $6,000 per month $4,000 per month $1,000 per month $800 per month $1,000 per month C...
Pearl, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $45,000 in January, $55,000 in February, and $65,000 in March. Variable and fixed selling and administrative expenses are as follows: Variable Expenses: Power cost Miscellaneous expenses Fixed Expenses: Salaries expense Rent expense Depreciation expense Power cost/fixed portion Miscellaneous expense/fixed portion OA. $35,300 OB. $40,300 OC. $22,500 OD. $45,300 (40% of sales) (10% of sales) $6,000 per month $4,000 per month $1,000 per month $800 per month $1,000 per month C...
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 2E: The sales department of F. Pollard Manufacturing Co. has forecast sales in March to be 20,000 units....
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text:Pearl, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $45,000 in January, $55,000 in February, and $65,000 in March. Variable and fixed selling and administrative
expenses are as follows:
Variable Expenses:
Power cost
Miscellaneous expenses
Fixed Expenses:
Salaries expense
Rent expense
Depreciation expense
Power cost/fixed portion
Miscellaneous expense/fixed portion
OA. $35,300
OB. $40,300
OC. $22,500
OD. $45,300
(40% of sales)
(10% sales)
$6,000 per month
$4,000 per month
$1,000 per month
$800 per month
$1,000 per month
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