Question

Develop a table using the information provided in Attachment 1 (do not forget columns for rent and insurance).

Provide totals for each expense category (e.g., salary) and for each month.

Calculate the following:

Average of the actual expenses incurred for each expenses category.

Estimate to Complete (ETC). This is the amount you are forecasting will be spent for each of the expense categories for the remainder of the year. (Use the monthly average times the number of remaining months except for the insurance payment)

Estimate at Completion (EAC) – total actual expenses plus the ETC.

Difference between the budget (attachment 1) and your EAC for each expense category.

	Salaries	Supplies	Phone	Utilities	Travel	Training	Advertising
Jan	12,543	1,256	159	485	1,254	546	658
Feb	9,953	753	175	387	845	897	799
Mar	11,245	1,089	236	446	2,879	547	589
Apr	13,678	758	187	478		299	541
May	12,005	589	145	515	2,898	684	879
Jun	10,745	968	198	625	1,985	486	632
Jul	11,486	1,546	230	695	1,656	525	823
Aug
Sep
Oct
Nov
Dec

Monthly rent for the office is $2,750

Insurance is $187 (per month) for the first 3 months and goes up to $195 in April

Annual Budget Information:

Salaries            135,000           

Supplies            12,000

Phone                  2,400

Utilities                5,750

Travel                12,000

Training              7,000

Rent                 33,000

Insurance           2,136

Advertising     10,000

Answer 1