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 $9,400 Insurance 2,250 Depreciation 4,000 Accounting services 600 Required: Question Content Area 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 CompanyAdministrative Expense BudgetFor the Summer Months June July August Total Salaries $___ $___ $___ $___ Insurance ____ ____ ____ ____ Depreciation ____ ____ ____ ____ Accounting services ____ ____ ____ ____ Total administrative expense $_____ $____ $____ $____ Question Content Area 2. What if Green Earth Landscaping Company's insurance rates increased at the beginning of July to $2,800 per month? How would that affect monthly administrative expense? Total monthly administrative cost would increase by $________
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.
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 | $9,400 |
| Insurance | 2,250 |
| 4,000 | |
| Accounting services | 600 |
Required:
Question Content Area
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.
| June | July | August | Total | |
|---|---|---|---|---|
| Salaries | $___ | $___ | $___ | $___ |
| Insurance | ____ | ____ | ____ | ____ |
| Depreciation | ____ | ____ | ____ | ____ |
| Accounting services | ____ | ____ | ____ | ____ |
| Total administrative expense | $_____ | $____ | $____ | $____ |
Question Content Area
2. What if Green Earth Landscaping Company's insurance rates increased at the beginning of July to $2,800 per month? How would that affect monthly administrative expense?
Total monthly administrative cost would increase by $________
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