Self-test problem 1.1 The personnel department of Soule Holdings' Farm Machinery Division had the following actual results for last year: Salaries Stationery Telephone Electricity Office rent Depreciation $ 215 600 4 930 9 800 10 750 25 200 8 400 274 680 NEXT YEAR'S BUDGET 226380 5078 10192 10965 25 200 It is estimated that next year's budget will reflect the following changes: Salaries are to increase by 5%. Stationery is to increase by 3%. Telephone usage is expected to decline by 4%. Electricity is to increase by 2%. Due to a long-term lease, office rent should remain the same. Depreciation-it is anticipated that furniture costing $5600 will be disposed of at the beginning of the financial year and immediately replaced with new furniture costing $7000. The rate of depreciation for furniture is 10% per annum on cost. Required Prepare next year's budget for Soule Holdings' Farm Machinery Division