Domino Consulting, budgeted overhead and other expenses as follows for the year ended December 31, 2023: Overhead: Rent $ 25,000 Repairs 10,000 Fuel 35,000 Maintenance 15,750 Supplies 6,100 Heat and light 20,250 Depreciation-computer 9,400 Miscellaneous 6,000 Depreciation-building 18,000 Depreciation-equipment 12,000 Wages 600,000 Fringe benefits 9,000 Other direct expenses: Travel $15,000 Entertainment 12,000 1. Prepare an Overhead budget. 2. Prepare an Other Expenses budget. 3. Prepare a Budgeted Income Statement.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Domino Consulting, budgeted
Overhead:
Rent $ 25,000
Repairs 10,000
Fuel 35,000
Maintenance 15,750
Supplies 6,100
Heat and light 20,250
Miscellaneous 6,000
Depreciation-building 18,000
Depreciation-equipment 12,000
Wages 600,000
Other direct expenses:
Travel $15,000
Entertainment 12,000
1. Prepare an Overhead budget.
2. Prepare an Other Expenses budget.
3. Prepare a
Step by step
Solved in 3 steps
