Smith, Inc., sells tire rims. Its sales budget and inventory, purchases, and cost of goods sold budget for the nine months ended September 30, 2024, follow: (Click the icon to view the sales budget and inventory, purchases, and cost of goods sold budget.) Smith’s selling and administrative expenses include the following: (Click the icon to view the expenses.) Prepare a selling and administrative expense budget for each of the three quarters of 2024 and totals for the nine-month period.<\/p>\n\n\n\n
Smith, Inc. Selling and Administrative Expense Budget Nine Months Ended September 30, 2024<\/p>\n\n\n\n
Quarter Ended March 31 June 30 September 30 Nine-month Total
Variable expenses: Total variable expenses
Fixed expenses: Total fixed expenses
Total selling and administrative expenses
Reference<\/p>\n\n\n\n
The Correct Answer and Explanation is:<\/mark><\/strong><\/p>\n\n\n\n To provide a complete and accurate Selling and Administrative Expense Budget<\/strong> for Smith, Inc. for the nine months ended September 30, 2024, I need the sales budget and the breakdown of variable and fixed selling and administrative expenses<\/strong> (including cost behavior details). However, since you mentioned “Click the icon to view,” it seems you are referring to a file or textbook figure, which I currently cannot see.<\/p>\n\n\n\n That said, I will outline a template<\/strong> and explain how to compute the numbers, assuming typical structures for such a budget.<\/p>\n\n\n\n Nine Months Ended September 30, 2024<\/strong><\/p>\n\n\n\n A selling and administrative (S&A) expense budget<\/strong> is part of a master budget and outlines the expected costs for operating the business (excluding production). It typically includes both variable<\/strong> and fixed<\/strong> expenses.<\/p>\n\n\n\n Variable selling and administrative expenses<\/strong> change with the level of sales. For example, if Smith, Inc. expects 10% of sales to be variable S&A costs, and the sales for the quarter ending March 31 are $300,000, then the variable expenses would be 10% \u00d7 $300,000 = $30,000<\/strong>.<\/p>\n\n\n\n Fixed expenses<\/strong>, on the other hand, remain constant regardless of the sales level and are often spread evenly across quarters. Examples include salaries<\/strong>, rent<\/strong>, insurance<\/strong>, and depreciation<\/strong>. If monthly salaries total $10,000, then quarterly fixed salary expenses would be $30,000.<\/p>\n\n\n\n Each quarter\u2019s total S&A expenses<\/strong> are the sum of variable and fixed expenses<\/strong>. To calculate the nine-month total<\/strong>, add the expenses from all three quarters.<\/p>\n\n\n\n This budget is important because it helps management plan cash needs<\/strong>, control operating costs<\/strong>, and assess profitability<\/strong>. Fixed costs, though unchanging in the short term, can become burdensome if sales volume drops unexpectedly. Variable costs allow more flexibility since they scale with activity.<\/p>\n\n\n\n If you can upload or paste the specific sales budget and S&A expenses, I can fill in the exact figures in the budget and give a precise answer. <\/p>\n","protected":false},"excerpt":{"rendered":" Smith, Inc., sells tire rims. Its sales budget and inventory, purchases, and cost of goods sold budget for the nine months ended September 30, 2024, follow: (Click the icon to view the sales budget and inventory, purchases, and cost of goods sold budget.) Smith’s selling and administrative expenses include the following: (Click the icon to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-213272","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/213272","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=213272"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/213272\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=213272"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=213272"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=213272"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n\n\n\nSmith, Inc. \u2013 Selling and Administrative Expense Budget<\/strong><\/h3>\n\n\n\n
Quarter Ended<\/th> March 31<\/th> June 30<\/th> Sept. 30<\/th> Nine-month Total<\/th><\/tr><\/thead> Variable Expenses<\/strong><\/td> <\/td> <\/td> <\/td> <\/td><\/tr> % of Sales (e.g., 10%)<\/td> $X<\/td> $Y<\/td> $Z<\/td> $X+Y+Z<\/td><\/tr> Total Variable Exp.<\/strong><\/td> $X<\/td> $Y<\/td> $Z<\/td> $TotalVar<\/td><\/tr> <\/td> <\/td> <\/td> <\/td> <\/td><\/tr> Fixed Expenses:<\/strong><\/td> <\/td> <\/td> <\/td> <\/td><\/tr> Salaries<\/td> $A<\/td> $A<\/td> $A<\/td> $A\u00d73<\/td><\/tr> Rent<\/td> $B<\/td> $B<\/td> $B<\/td> $B\u00d73<\/td><\/tr> Depreciation<\/td> $C<\/td> $C<\/td> $C<\/td> $C\u00d73<\/td><\/tr> Other Fixed Costs<\/td> $D<\/td> $D<\/td> $D<\/td> $D\u00d73<\/td><\/tr> Total Fixed Exp.<\/strong><\/td> $F1<\/td> $F1<\/td> $F1<\/td> $F1\u00d73<\/td><\/tr> <\/td> <\/td> <\/td> <\/td> <\/td><\/tr> Total S&A Exp.<\/strong><\/td> $X+F1<\/td> $Y+F1<\/td> $Z+F1<\/td> Grand Total<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
\n\n\n\nExplanation (Approx. 300 Words)<\/strong><\/h3>\n\n\n\n