Selling and Administrative Expenses Are Billed and Paid the Month

Selling and administrative expenses are billed and paid the month after they occur. Selling and administrative expenses have both a fixed and a variable component. The fixed component is a constant $4,700 a month. The variable component equals 5 percent of revenues. Given revenues of $300,000 for January, $350,000 for February, and $400,000 for March, what would be the budgeted selling and administrative expenses that would be paid in March?

A) $4,700
B) $13,200
C) $22,200
D) $19,700

Correct Answer:

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