Flexible Budget for Selling and Administrative Expenses Fuller Enterprises uses flexible budgets that are based on the f

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Flexible Budget for Selling and Administrative Expenses
Fuller Enterprises uses flexible budgets that are based on thefollowing data:
Prepare a flexible selling and administrative expenses budgetfor July for sales volumes of $90,000, $115,000, and $135,000.(Use Exhibit 5 as a model.) Enter allamounts as positive numbers.
Miscellaneous selling expensesResearch and developmentexpenseSales commissionsSales feesSales commissions
Advertising expenseOffice salaries expenseOffice suppliesexpenseSales revenueAdvertising expense
Customer support expenseOffice supplies expenseResearch anddevelopment expenseSales feesCustomer support expense
Miscellaneous administrative expenseMiscellaneous sellingexpenseOffice salaries expenseSales revenueMiscellaneousadministrative expense
Advertising expenseCustomer support expenseOffice suppliesexpenseSales commissionsSales revenueCustomer support expense
Advertising expenseOffice supplies expenseOffice salariesexpenseSales commissionsSales revenueOffice salaries expense
Advertising expenseMiscellaneous administrative expenseOfficesupplies expenseSales commissionsSales RevenueMiscellaneousadministrative expense
Advertising expenseOffice supplies expenseResearch anddevelopment expenseSales commissionsSales RevenueResearch anddevelopment expense
Static Budget vs. Flexible Budget
The production supervisor of the Painting Department for WhitleyCompany agreed to the following monthly static budget for theupcoming year:
The actual amount spent and the actual units produced in thefirst three months in the Painting Department were as follows:
The Painting Department supervisor has been very pleased withthis performance, since actual expenditures have been less than themonthly budget. However, the plant manager believes that thebudget should not remain fixed for every month but should "flex" oradjust to the volume of work that is produced in the PaintingDepartment. Additional budget information for the PaintingDepartment is as follows:
Question Content Area
a. Prepare a flexible budget for theactual units produced for January, February, and March in thePainting Department. Assume depreciation is a fixedcost. Enter all amounts as positive numbers. Ifrequired, round per unit amounts to the nearest cent.
Question Content Area
b. Compare the flexible budget with theactual expenditures for the first three months.
Excess of budget over actual costExcess of actual cost overbudget
What does this comparison suggest?
YesNo
YesNo
Sales and Production Budgets
Bass Audio Company manufactures two models of speakers, U500 andS1000. Based on the following production and sales data forJune.
Question Content Area
a. Prepare a salesbudget. Enter all amounts as positivenumbers.
Question Content Area
b. Prepare a productionbudget. Enter all amounts as positivenumbers.
Less desired inventory, June 30Less estimated inventory, June1Plus desired inventory, June 30Plus estimated inventory, June1
Less desired inventory, June 30Less estimated inventory, June1Plus desired inventory, June 30Plus estimated inventory, June1