During November, Olcor Construction Corporation production budget showed 6,000 units to be...
Question:
During November, Olcor Construction Corporation production budget showed 6,000 units to be produced, and its sales budget showed 6,200 units to be sold. The following selling and administrative expenses were budgeted for November, 2017:
| Corporate depreciation | $24,000 |
|---|---|
| Corporate insurance | $31,000 |
| Office salaries | $27,000 |
| Customer delivery costs | $18,000 |
| Variable administrative supplies | $4.30 per unit |
| Corporate rent | $33,000 |
Prepare a selling and administrative expense budget for November.
Indirect Cost:
The indirect cost is the cost which is not included in the cost of producing the goods or services. It can be fixed or variable in nature and deducted from the gross profit to calculated the net profit during the year. Examples: utilities, insurance, salaries, advertising, etc.
Answer and Explanation: 1
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View this answerThe selling and administrative expense budget for November as follows:
| Particulars | amount |
|---|---|
| Corporate depreciation | ...
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Preparing a Selling & Administrative Expense Budget
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