Crable and Tesch, the systems consultants in P9-3, budgeted overhead and other expenses as follows for the year ended December 31, 2016:
Overhead:
Depreciation—equipment . . . . . . . . . . . . . . . . . . . . . . . $ 60,000
Depreciation—building . . . . . . . . . . . . . . . . . . . . . . . . . 135,000
Fringe benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 385,000
Photocopying . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95,000
Administrative support . . . . . . . . . . . . . . . . . . . . . . . . . 465,000
Telephone/fax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115,000
Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193,000
Other direct expenses:
Travel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $123,000
Meals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,000
Required:
1. Prepare an Overhead budget.
2. Prepare an Other Expenses budget.