Question
Incremental Budget Wood County uses an incremental approach to budgeting. The 2016 cash budget for the Wood County Department of Motor Vehicles is presented as
Incremental Budget Wood County uses an incremental approach to budgeting. The 2016 cash budget for the Wood County Department of Motor Vehicles is presented as follows:
Supplies | $22,500 |
Temporary and seasonal wages | 34,500 |
Wages of full-time employees | 277,500 |
Supervisor salaries | 70,500 |
Rent | 39,000 |
Insurance | 21,000 |
Utilities | 23,000 |
Miscellaneous | 16,500 |
Contingencies and equipment | 52,500 |
Total | $557,000 |
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.)
QUESTION: What is Contingencies and equipment?
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