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Duncan Budget

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Duncan Company combines its operating expenses for budget purposes in a selling
and administrative expense budget. For the first 6 months of 2014, the following data are
available.

1. Sales: 20,000 units quarter 1; 22,000 units quarter 2.
2. Variable costs per dollar of sales: sales commissions 5%, delivery expense 2%, and
advertising 4%.
3. Fixed costs per quarter: sales salaries $10,000, office salaries $8,000, depreciation
$4,200, insurance $1,500, utilities $800, and repairs expense $500.
4. Unit selling price: $20.

Instructions
Prepare a selling and administrative expense budget by quarters for the first 6 months of
2014.

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