Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Department of Customer Service s Accounting Division bases its budget request for the following year on the average of its actual expenses for the

The Department of Customer Services Accounting Division bases its budget request for the following year on the average of its actual expenses for the previous four years. The division has both fixed costs, which remain the same year-to-year, and variable costs, which fluctuate year-to-year. Each years budget request is determined by adding the fixed costs for the current year to the average of the variable costs for the previous four years. Below is a summary of the Accounting Divisions fixed and variable costs for the years 2018 through 2021.
Fixed Costs
2018
2019
2020
2021
Facility Fee
36,569.98
36,569.98
36,569.98
36,569.98
Software Licenses
4,146.25
4,146.25
4,146.25
4,146.25
Telephone and Internet Services
2,046.36
2,046.36
2,046.36
2,046.36
Variable Costs
2018
2019
2020
2021
Staffing
481,658.12
388,368.78
379,658.04
386,459.05
Staff Training
1,668.82
1,223.54
972.12
1,746.33
Supplies
2,268.79
2,127.45
2,325.23
2,528.69
26. According to the information above, what will the accounting divisions approximate budget be for the year 2022?
a. $433,497
b. $455,514
c. $1,693,768
d. $1,822,055

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_2

Step: 3

blur-text-image_3

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

College Accounting A Practical Approach Chapters 1-12

Authors: Jeffrey Slater

11th Edition

013606566X, 978-0136065661

More Books

Students also viewed these Accounting questions