Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 $12,000
Temporary and seasonal wages 18,400
Wages of full-time employees 148,000
Supervisor salaries 37,600
Rent 39,000
Insurance 21,000
Utilities 23,000
Miscellaneous 8,800
Contingencies and equipment 28,000
Total $335,800

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.)

Wood County Department of Motor Vehicles
Incremental Budget
For the Year 2017
Supplies $Answer
Temporary and seasonal wages Answer
Wages of full-time employees Answer
Supervisor salaries Answer
Rent Answer
Insurance Answer
Utilities Answer
Miscellaneous Answer
Contingencies and equipment Answer
Total $Answer

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Gleim CIA Review Part 2 Practice Of Internal Auditing

Authors: Irvin N. Gleim

2020 Edition

1618542648, 978-1618542649

More Books

Students also viewed these Accounting questions