Answered

At Westonci.ca, we make it easy to get the answers you need from a community of informed and experienced contributors. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.

Warshaw Company is preparing the June Budget. The June budget includes the following data: Sales $100,000 Purchases of Merchandise $95,000 Depreciation of office equipment in Accounting Department $2,615 Insurance $11,544 Payroll expenses $5,722 a month plus 2% of sales (for sales and administrative personnel) Administrative office expenses incurred to order purchases are budgeted at 4% of purchases of merchandise only Purchase of equipment $3,537 Research and Development 8% of sales What is total operating expense for June? (hint: not everything listed is an operating expense)

Sagot :

Answer:

$33,681

Explanation:

According to the scenario, computation of the given data are as follows,

Operating Expense for June  = Depreciation+ Insurance+Payroll expense+ Admin Expenses +Research and Development expense

Where, Depreciation = $2,615

Insurance expense = $11,544

Payroll expense = $5,722 + ( 2% × $100,000) = $7,722

Admin expense = 4% × $95,000 = $3,800

Research and Development expense = 8% × $100,000 = $8,000

So, Operating Expense for June = $2,615 + $11,544 + $7,722 + $3,800 + $8,000

= $33,681

Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.