Insurance premium

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Reference no: EM13928515

The following budget information is available for the HD Sales Company for January

Sales 320,000

Freight out .25 pe unit sold

Deprecate on Admin Equip 10,000

Sales and Adm Sal 40,000 + 2% of sales

Advertising 12,000

Depreciation on Manu Equip 15,000

Lease on Sales Building 45,000

Miss. Selling Exp.. 5,000

overhead expenses are budgeted at $2000 per month. Included in the 2,000 are $500 of monthly depreciation expenses and $200 of allocated expenses related to the insurance premium that is paid on September. What is the cash outflow for overhead for the month of May?

a. $200

b. $500

c. $1300

d. $1200

Reference no: EM13928515

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