Incremental Budget

Wood County uses an incremental approach to budgeting. The current year cash budget for the Wood County Department of Motor Vehicles is presented as follows:

Supplies: 27,000
Temporary and seasonal wages:41,400
Wages of full-time employees: 333,000
Supervisor salaries:84,600
Rent: 39,000
Insurance:21,000
Utilities: 23,000
Miscellaneous:19,800
Contingencies and equipment: 63,000
Total:651,800

Prepare an incremental cash budget for next year assuming the planned total budget increase is 2.5 percent. Budget details include a budget increment for salaries and wages of 4 percent, no change in rent, and 2 percent increases in the budget for supplies and miscellaneous. Utility companies have received approvals for rate increases amounting to 4 percent and insurance companies have announced an increase in premiums of 6 percent. (Hint: The Contingencies and equipment budget is a plug.)

Wood County Department of Motor Vehicles Incremental Budget For Next Year

Supplies:
Temporary and seasonal wages:
Wages of full-time employees:
Supervisor salaries:
Rent:
Insurance:
Utilities:
Miscellaneous:
Contingencies and equipment:
Total:
1) $27,540
2) $42,960
3) $338,520
4) $87,144
5) $39,000
6) $22,260
7) $23,460
8) $20,196
9) I) $63,000
10) J) $667,380