Skeete inc. bases its selling and administrative expense budget on the number of units sold. the variable selling and administrative expense is $4.90 per unit. the budgeted fixed selling and administrative expense is $30,170 per month, which includes depreciation of $3,440. the remainder of the fixed selling and administrative expense represents current cash flows. the sales budget shows 3,800 units are planned to be sold in november. required: prepare the selling and administrative expense budget for november.

Answer and Explanation:

                                                                                                  November

Sales unit                                                                                 3800

Variable selling and administrative expense (3800*4.90)         18620

Fixed selling and administrative expense                                 30,170

Total selling and administrative expense                                 48790

Depreciation                                                                                 (3,440)

Cash disbursement on selling and administrative expense45350

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answer; the correct answer to the above statement is (true);