Wood County uses an incremental approach to budgeting. The 2016 cash budget for the Wood County Department of Motor Vehicles is presented as follows:

Required
Prepare an incremental cash budget for 2017, assuming the planned total budget increase is 2.5 percent.
Budget details include a budget increment for salaries and wages of 4 percent, no change in rent, and 2 percent increases in the budget for supplies and miscellaneous. Utility companies have received approvals for rate increases amounting to 4 percent and insurance companies have announced an increase in premiums of 6 percent. (Hint: The Contingencies and equipment 2017 budget is a plug.)

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Supplies... $15,000 Temporary and seasonal wages.. 23,000 Wages of full-time employees 185,000 Supervisor salaries. 47,000 Rent 39,000 Insurance 21,000 Utilities. Miscellaneous. Contingencies and equipment. Total..... 23,000 11,000 35,000 $399,000