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ad-work [718]
2 years ago
11

Schuepfer Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 2,700 units ar

e planned to be sold in March. The variable selling and administrative expense is $3.20 per unit. The budgeted fixed selling and administrative expense is $35,770 per month, which includes depreciation of $4,200 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the March selling and administrative expense budget should be:___________.
a. $40,210
b. $44,410
c. $31,570
Business
1 answer:
Fynjy0 [20]2 years ago
3 0

Answer:

Total cash disbursement= $40,210

Explanation:

Giving the following information:

The sales budget shows 2,700 units are planned to be sold in March. The variable selling and administrative expense are $3.20 per unit.

The budgeted fixed selling and administrative expense are $35,770 per month, which includes depreciation of $4,200 per month.

Th<u>e depreciation expense is not a cash disbursement. </u>

Total cash disbursement= total variable cost + total fixed cost

Total cash disbursement= 2,700*3.2 + (35,770 - 4,200)

Total cash disbursement= $40,210

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ivann1987 [24]

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Dan Demaar and Rob Runten are working on a class assignment on economic growth. Dan collects the GDP growth data for the country
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A

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Kuhn Bicycle Company has been manufactring its own seats for its bicycles. The company is currently operating at 100% capacity,
AfilCa [17]

Answer:

It is cheaper to buy the seats.

Explanation:

Giving the following information:

The company is currently operating at 100% capacity, and variable manufacturing overhead is charged to production at the rate of 60% of direct labor cost. The direct materials and direct labor cost per unit to make the bicycle seats are $8.00 and $9.00, respectively. Normal production is 50,000 bicycles per year. A supplier offers to make the bicycle seats for $21 each. If the bicycle company accepts this offer, all variable manufacturing costs will be eliminated, but the $30,000 of fixed manufacturing overhead currently being charged to the bicycle seats will have to be absorbed by other products.

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