Coronado Industries makes and sells umbrellas. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available: Variable Cost Per Unit Sold Monthly Fixed Cost Sales commissions $0.60 $ 4500 Shipping 1.20 Advertising 0.30 Executive salaries 50000 Depreciation on office equipment 7400 Other 0.35 38000 Expenses are paid in the month incurred. If the company has budgeted to sell 8500 umbrellas in October, how much is the total budgeted variable selling and administrative expenses for October?

$120,725

Explanation:

Calculation to determine how much is the total budgeted variable selling and administrative expenses for October

Total budgeted variable selling and administrative expenses =( 0.60+1.2 + 0.3 + 0.35) x 8,500 + 4500 + 50,000 + 7400 + 38,000

Total budgeted variable selling and administrative expenses =2.45*8500+4500 + 50,000 + 7400 + 38,000

Total budgeted variable selling and administrative expenses=$20,825+4500 + 50,000 + 7400 + 38,000

Total budgeted variable selling and administrative expenses=$120,725

Therefore the total budgeted variable selling and administrative expenses for October is $120,725

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