You will be creating a budget for one of the departments on Netflixs income statement under Technology
Question:
You will be creating a budget for one of the department’s on Netflix’s income statement under Technology and Development for 2021
The Actual for Technology and Development expenses were 1,829,600. This amount will be broken out into four departments equally:
- Cybersecurity – 25%
- Research – 25%
- Development – 25%
- I.T. – 25%
The company has decided to use incremental budgeting and is granting each department a 5% increase for 2021. Therefore, the new budget for 2021 is 1,921,080.
Breaking this out evenly across the four departments, the 2021 budget for each is:
Department | % Increase | 2021 Budget |
Cybersecurity | 25% | $480,270 |
Research | 25% | $480,270 |
Development | 25% | $480,270 |
I.T. | 25% | $480,270 |
You are to select one department and create a budget for 2021 based on the following assumptions:
Wages
- There are 5 members in the department:
- One Director that gets paid $130,000/year.
- One Supervisor that gets paid $95,000/year.
- Three Junior Staff members that get paid $65,000/year each.
Travel
- There are three conferences in 2021 and you will be sending 2 employees to each conference.
- The first two conferences cost $3,000 per person and the third conference is $5,000 per person.
- The conferences will be held in February, May, and September
Meals
- Meals will be paid for travel to the conferences mentioned above. Each person will receive $250 per day and each conference is five days.
Training
- The entire department will be attending a training seminar in April and the cost is $5,000 per person.
Meals
- During the training session for the entire department, each person will receive $250 per day for meals and the training session is for three days.
Supplies
- Each person in the department spends $24 per month each for supplies
Miscellaneous
- The company always allocates $50 per month for miscellaneous expenses from January – October and then $40 per month for November – December.
Using the attached Excel spreadsheet, you are to take the assumptions and plot them out on the budget template that is provided to you. The assumptions are also listed on the spreadsheet, so you do not have to go back and forth from the assignment instructions to the Excel file.
Once you have filled in the amounts on the attached spreadsheet, you will upload the spreadsheet to Canvas. Please make sure to include your name on the file that is submitted to Canvas. There is no written part to this assignment – just the Excel spreadsheet. Remember, your final number should match the 2021 budget of $480,270.