The following information is also relevant: a) Increase in 2015 activities will attract 15% overhead cost b) 12% of the total salaries in 2015 is required to meet the additional personnel cost in 2015. C) The personnel cost of the year 2014 includes GHS945, 000 spent on staff allowances. The staff allowances will attract 25% of the 2015 staff salaries. d) However, an inflation of 10% on overhead cost is recognized in the computation of 2015 budget. c) The current level of capital assets would be enough to support the activities in 2015. You are required to prepare, on the incremental basis, the budget for 2015.
The following information is also relevant: a) Increase in 2015 activities will attract 15% overhead cost b) 12% of the total salaries in 2015 is required to meet the additional personnel cost in 2015. C) The personnel cost of the year 2014 includes GHS945, 000 spent on staff allowances. The staff allowances will attract 25% of the 2015 staff salaries. d) However, an inflation of 10% on overhead cost is recognized in the computation of 2015 budget. c) The current level of capital assets would be enough to support the activities in 2015. You are required to prepare, on the incremental basis, the budget for 2015.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following information is also relevant:
a) Increase in 2015 activities will attract 15% overhead cost
b) 12% of the total salaries in 2015 is required to meet the additional personnel cost in 2015.
c) The personnel cost of the year 2014 includes GHS945, 000 spent on staff allowances. The staff
allowances will attract 25% of the 2015 staff salaries.
d) However, an inflation of 10% on overhead cost is recognized in the computation of 2015 budget.
e) The current level of capital assets would be enough to support the activities in 2015.
You are required to prepare, on the incremental basis, the budget for 2015.
Transcribed Image Text:Hteht of the National Budget of Ghana.
Question 5
A Government Ministry has provided the following information about its budgeted and actual overhead
and personnel costs for 2014.
Actual
Budgeted
GHS'000
GHS'000
Compensation
2490
2600
Goods and services
Travelling and Transport
1030
875
Utility Services
317.5
355
Telephone services
2625
210
Stationery
986
116
635
605
Maintenance of vehicles
1182.5
1575
Maintenance of Capital Assets
1725
202.5
Staff Training & Development
Assets:
364
400
Office Furniture
62
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