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ige assignment urse QUESTION 2 Partially correct 1.00 points out of 10.00 Abiola

ID: 2581511 • Letter: I

Question

ige assignment urse QUESTION 2 Partially correct 1.00 points out of 10.00 Abiola Sonuga- Flag Incremental Budget ood County Supplies Temporary and seasonal wages Wages of full-time employees Supervisor salaries Rent insurance Ubilities $15,000 23,000 185,000 47,000 21,000 23,000 11,000 Contingencies and equipment 35,000 Total Required Prepare an incremental cash budget for 2017. assuming the pianned total budget nrases 25 percent Budget details ndlude a budget increment for approvals for rate increases amounting to 4 percent and in $399,000 announced an increase in premiums of 6 percent. (Hint: The salaries and wages of 4 percent. no change in rent. and 2 percent increases to thte budget for supplies and miscellaneous, Utilily companies have receved Contingencies and equipment 2017 budget is a plug.) Incremental Budget For the Year 2017 s 15,375 x Supplies

Explanation / Answer

Wood Country Department of Motor Vehicles

Incremental Budget for the year 2017 (Amount in $)

As the total plannes budget increase is 2.5% which is given in the question, but the increase or decrease in contingencies and equipment is not given in the question, Thus the Contingencie and Equipment is the balancing figure and the decrease in Contingencies and Equipment is $2,925 ($35,000-$32,075).

Supplies ($15,000*1.02) (2% increase) 15,300 Temporary and seasonal wages (23,000*1.04) (4% increase) 23,920 Wages of fulltime employees (185,000*1.04) (4% increase) 192,400 Supervisor Salaries (47,000*1.04) (4% increase) 48,880 Rent (no change) 39,000 Insurance (21,000*1.06) (6% increase) 22,260 Utilities (23,000*1.04) (4% increase) 23,920 Miscellaneous (11,000*1.02) (2% increase) 11,220 Contingencies and Equipment (Balancing figure) 32,075 Total (399,000*1.025) (2.5% increase in total budget) 408,975