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Managerial accountant at Reliable Company
You are the managerial accountant at Reliable Company. You have been assigned to support the marketing department and manage its master budget. The marketing department is responsible for the following:
- Managing the firm’s marketing
- Hiring subcontractors
- Selling the consulting expertise to smaller outside firms
The department’s expenses are as follows:
- Salaries and benefits of $48,000/month
- Web site operations of $21,000/ month
- Online advertising expenses of $15,000/month
- Miscellaneous expenses of $3,500/month
The sales forecast for its consulting services are as follows:
- April: $190,000
- May: $200,000
- June: $205,000
The department pays a sales commission of 5%, and this is paid in the following month. Subcontractor expenses are estimated at 45% of sales and are paid the month after they are billed. Consulting fees are collected 20% in the month of sale, 70% in the following month, and 10% in the second month following sale.
Refer to the attached schedules.
Develop a master budget for the marketing department.
This task includes the following:
- Completing the attached schedules for a master budget for the marketing department
- Supporting schedules for cash disbursements and collections