Kapital,Inc

Kapital,Inc.has prepared the operating budget for the first quarter of the year.The company forecast sales of $50,000 in January,$60,000 in February,and $70,000 in March.Variable and fixed selling and administrative expenses are as follows: Variable Expenses: Power cost (30% of sales)
Miscellaneous expenses: (10% of sales)
Fixed Expenses: Salary expense: $6,000 per month
Salaries expense: $4,000 per month
Depreciation expense: $1,400 per month
Power cost/fixed portion: $800 per month
Miscellaneous expenses/fixed portion: $1,000 per month
Calculate total selling and administrative expenses for the month of January.

A) $33,200
B) $41,200
C) $20,000
D) $37,200

Correct Answer:

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