Answer:
The total budgeted selling and administrative expenses would be what amount on the January pro forma income statement is $113,400
Explanation:
Computation of total budgeted selling and administrative expenses in the January pro forma income statement is shown below:
= Freight out + Sales & Admin Salaries + Advertising + Lease on Sales building + Miscellaneous selling expenses
where,
Freight out = $0.25 × 20,000 units = $5,000
Sales & Admin Salaries = 40,000 + 2% of $320,000 = $46,400
So,
The total budgeted selling and administrative expenses is
= $5,000 + $46,400 + $12,000 + $45,000 + $5,000
= $113,400
Since depreciation part is not be considered because it is a non cash expense so we don't include the depreciation cost in computation part.
Hence, the total budgeted selling and administrative expenses would be what amount on the January pro forma income statement is $113,400
