Administrative Expense Budget Green Earth Landscaping Company provides monthly and weekly landscaping and maintenance services to residential customers in the tri-city area. Green Earth has no variable administrative expense. Fixed administrative expenses for June, July, and August include: Salaries $9,200 Insurance 2,000 Depreciation 4,200 Accounting services 700 Required: 1. Construct an administrative expense budget for Green Earth Landscaping Company for the three summer months. Show total amounts by month and in total for the three-month period.
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.
Administrative Expense Budget
Green Earth Landscaping Company provides monthly and weekly landscaping and maintenance services to residential customers in the tri-city area. Green Earth has no variable administrative expense. Fixed administrative expenses for June, July, and August include:
| Salaries | $9,200 |
| Insurance | 2,000 |
| 4,200 | |
| Accounting services | 700 |
Required:
1. Construct an administrative expense budget for Green Earth Landscaping Company for the three summer months. Show total amounts by month and in total for the three-month period.
| Green Earth Landscaping Company | ||||
| Administrative Expense Budget | ||||
| For the Summer Months | ||||
| June | July | August | Total | |
| Salaries | $fill in the blank 1f08a0f6bfb7029_1 | $fill in the blank 1f08a0f6bfb7029_2 | $fill in the blank 1f08a0f6bfb7029_3 | $fill in the blank 1f08a0f6bfb7029_4 |
| Insurance | fill in the blank 1f08a0f6bfb7029_5 | fill in the blank 1f08a0f6bfb7029_6 | fill in the blank 1f08a0f6bfb7029_7 | fill in the blank 1f08a0f6bfb7029_8 |
| Depreciation | fill in the blank 1f08a0f6bfb7029_9 | fill in the blank 1f08a0f6bfb7029_10 | fill in the blank 1f08a0f6bfb7029_11 | fill in the blank 1f08a0f6bfb7029_12 |
| Accounting services | fill in the blank 1f08a0f6bfb7029_13 | fill in the blank 1f08a0f6bfb7029_14 | fill in the blank 1f08a0f6bfb7029_15 | fill in the blank 1f08a0f6bfb7029_16 |
| Total administrative expense | $fill in the blank 1f08a0f6bfb7029_17 | $fill in the blank 1f08a0f6bfb7029_18 | $fill in the blank 1f08a0f6bfb7029_19 | $fill in the blank 1f08a0f6bfb7029_20 |
2. What if Green Earth Landscaping Company's insurance rates increased at the beginning of July to $3,000 per month? How would that affect monthly administrative expense?
Total monthly administrative cost would by $fill in the blank 70bea304bfeafd0_2.
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