Using the following information, create a line item budget showing the areas of Sales and Marketing, Research and Development, and Administrative for Globex Corp. Project your budget out for 4 quarters. Budgets should be broken down by each area (aka department) and reflect the total for each department. It is suggested that you use a spreadsheet to complete this assignment.

The fiscal year for Globex Corp. runs from January 1^st through December 31^st.

Salaries and wages for the marketing and sales department are a fixed cost of $300,000 for the year. Commissions are estimated to be at 10% of sales for Q1, 15% for Q2, 25% for Q3, and 20% for Q4 based on past data and incentive programs. Payroll taxes are figured at 8.4% of pay. There are no promotions anticipated for this department.

The company anticipates that sales each quarter will be $1.5 million, $2.3 million, $2.9 million, and $500,000, respectively. (Q1-Q4)

Office expenses for both the marketing and sales department and research and development are fixed at $40,000 per year.

The marketing and sales department has an overall advertising budget of $500,000 per year. Advertising expenses follow the same percentage breakdown as commission paid for each quarter.

The marketing and sales department has an overall travel budget of $100,000 annually. Managers are allowed to determine how that budget will be distributed over the course of the year.

A category of other expenses is included in each departments budget, for an allowance of $5,000 quarterly.

The Research and Development department is allocated 10% of quarterly sales from the previous quarter for its new/continuous projects. For example, sales of last fiscal years 4^th quarter were $650,000. For this fiscal year 1^st quarter, the total project budget for R&D is $65,000.

The R & D department employs 4 people 3 scientists and one administrative assistant. Salary is as follows:

Administrative assistant: $35,000 annually

Scientist #1: $75,000 annually

Scientist #2: $43.00 per hour, works 25 hours per week

Scientist #3: $80,000 annually

Payroll taxes are figured at 8.4% of wages

The R&D department has capitalized equipment which is depreciated at a rate of $10,000 per quarter.

The R&D department has contracted waste removal services at a monthly price of $6,000.

The R&D department provides each scientist with a professional development fund that can be used throughout the year. Each scientist is allowed to be reimbursed $3000 per year for these expenses

The Administrative department has several fixed expenses. Fixed expenses consist of quarterly insurance payments of $5,000, property taxes of $30,000 that are paid in the 1^st and 3^rd quarters, an offsite storage rental for $50 per month, and a supplies budget of $6,000 per month.

Utilities are averaged at a rate of $0.35 of each dollar of revenue generated per quarter

The Administrative department uses contracted services that total $3,500 monthly

Salaries for the Administrative department total $425,000 quarterly. Payroll taxes are calculated at 8.4% of salaries.

Health insurance and other benefits for all employees is calculated at a rate of 43.5% of total salaries.