Selling and Administrative Expense Budget

Selling and Administrative Expense Budget - 20-3 For...

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Selling and Administrative Expense Budget Hayes Company combines its operating expenses into one budget, the selling and administrative expense budget . This budget projects anticipated selling and administrative expenses for the budget period. This budget (Illustration 20-11 ) also classifies expenses as either variable or fixed. In this case, the variable expense rates per unit of sales are sales commissions $3 and freight-out $1. Variable expenses per quarter are based on the unit sales from the sales budget (Illustration
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Unformatted text preview: 20-3 . For example, Hayes expects sales in the first quarter to be 3,000 units. Thus, Sales Commissions Expense is $9,000 (3,000 × $3), and Freight-out is $3,000 (3,000 × $1). Fixed expenses are based on assumed data. Illustration 20-11 shows the selling and administrative expense budget. Illustration 20-11 Selling and administrative expense budget...
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