G&A budgeting is difficult to plan and control
G&A budgeting is difficult to plan and control. One approach is to determine the range of acceptable costs as a percentage of revenue to reach the revenue target. Another way is to review administrative costs and determine how much should be allocated to each field using historical data. It is useful to break up G&A costs into discretionary and non-discretionary costs. Discretionary costs, like bonuses, are not essential for meeting short-term business goals. These costs are usually targets for deductions when costs need to be reduced. Managers can budget rent only using monthly rental figures. This figure must include adjustments for increases in living costs, property taxes, and rental-escalation clauses. In salary budgeting, double the number of employees by their monthly salary, including provisions for salary increases, sick leave, holidays, holidays and additional benefits. In tax budgeting and licensing, use a historical percentage rate. Research cities, states, and federal sources for potential improvement. Divide based on 12 months and apply it to each month of the budget. Salary tax can be estimated by taking a percentage of between 10 and 15 percent of gross salary costs as a monthly budget. In budgeting travel costs, determine what trips will be taken, where they will be taken, and who will go. If only a simple trip can be made, divide the total annual dollars by 12 to determine the monthly budget. If extensive travel involves, count each month separately with the actual trip expected for that month. Department budgets for general and administrative expenses appear in Exhibit 12.1. EXHIBITION 12.1 Departmental Budget EXHIBITION 12.1 Departmental Budget Department name and number: Department manager: Point: Budgeted Goods Cost Original Price Difference Percent Variance to Budget 238 & Funding Basics and Exceeding & Funding Basics and Exceeding It is recommended to base administrative expenses budgeted for certain plans and programs. Past experience, adjusted for anticipated changes in management policies and general economic conditions, is very helpful. Because most administrative costs are set, historical record analysis will often provide a sound basis for budgeting. The concept of a flexible expenditure budget has not been widely accepted to control administrative costs, but there is rarely a practical reason for not applying the concept to these expenses. The fact that most administrative costs are fixed simplifies the application of flexible budgets. Headcount Forecasting In the non-manufacturing functions of a business (such as general administration, R&D, marketing, and product engineering), the most significant expense is usually salary. Some companies have developed formal procedures to project and control these expenses. This method is known as the estimated number of employees algorithm. The method used by Intel This method is known as the estimated number of employees algorithm. The method used by Intel This method is known as the estimated number of employees algorithm. The method used by Intel Corporation, is explained in the following excerpt from a Typical accounting management article. Corporation, described in the following excerpt from a Typical accounting management article. Corporation, described in the following excerpt from a Typical accounting management article HEADCOUNT H FORECASTING ALGORITHM How do you control indirect costs in a dynamic environment? One answer H How do you control indirect costs in a dynamic environment? One answer is the indirect headcount (cost) algorithm. The headcount algorithm is a systematic method that helps managers evaluate the demand for additional staff from specialists or indirect product heads and at the same time control indirect costs and increase productivity. Intel managers find it very helpful when considering the reallocation of resources among rapidly developing or contracting product groups. The concept of using an algorithm to control costs is not new. Management accountants use the same algorithm to control variable expenditure. For example, flexible budgets usually adjust the allowance for variable indirect costs based on several measures of manufacturing activity. Control is improved when actual costs are compared with flexible budget allowance for the actual volume level experienced. When operations become more capital intensive and indirect fixed costs become a larger segment of total expenditure, controls that focus on variable indirect costs are no longer adequate. At Intel, the main component of indirect costs is salaries for marketing and other product support groups. Traditionally, this set of costs has been considered a fixed cost. However, the headcount algorithm treats these costs basically as variable step costs and attempts to set target expenditures (continued) (continued) General and Administrative Costs & General and Administrative Costs & ANALYSIS AND EVALUATION Budgeted expenditures must document how the amount was obtained and the source information. Costs must be evaluated by type. They should be (continued) (continued) levels as a function of several volume measurements and other important characteristics of each product group. When the company becomes more capital intensive, indirect expenditure starts to represent a larger segment of total expenditure, and the company decides it is time to exert greater control over nonproduction area staff from the company’s operations. Top management became committed to developing methods for estimating workforce needs. Before deciding on the basic algorithm approach, management considers and rejects other models. Regression analysis and time series analysis are ruled out because of a lack of historical data and a rapidly changing future environment. The headcount algorithm was chosen because it is simple, understandable, and at the same time realistic. Managers can use it to measure productivity effectively in non-production fields, including consumer marketing and technical marketing, engineering, and product engineering. The basic approach to forecasting algorithms is the weighted average of the estimated indicators divided by their targets: Estimated Number of Employees ¼ XN Estimated Number of Employees ¼ XN Estimated Number of Employees ¼ XN Estimated Number of Employees ¼ XN I ¼ 1 I ¼ 1 I ¼ 1 Weight i Indicator estimates i Target Indicators At Intel targets and indicator weights are determined from in-depth interviews with customer marketing engineers (CME) and technical marketing engineers, as well as with product engineers. During this interview, the engineers identified several predictors for workforce needs including sales revenue, volume, product maturity and development, and market segments. For example, the CME agreed that for its operating areas, the main indicators for the number of employees were revenue, new products, and total products. These items are then included in the algorithm. Further analysis revealed that the most important of these three indicators were income; New products and total products are less important but equally important. Sources: Michael Gilchrist, Diane D. Pattison, and Ronald J. Kudla, ′ ′ Controlling Indirect Costs with Algorithms Source: Michael Gilchrist, Diane D. Pattison, and Ronald J. Kudla, ′ ′ Controlling Indirect Costs with Head Estimated Algorithms -Count, ′ ′ Accounting management, August 1985, p. 47–48. Estimated Head-Count, ′ ′ Accounting management, August 1985, p. 47–48. Estimated Head-Count, ′ ′ Accounting management, August 1985, p. 47–48. 240 & Funding Basics and Exceeds & Fundamentals of Budgeting and Exceeding compared to sales over the years and with competitors. If a substantial increase in costs is not proportionate to sales or production, reasons must be found and, if necessary, corrective action taken. Costs may also be related to direct working hours, operating income, and number of transactions. Many administrative costs are not subject to measurement, standardization, or special predication. Managers must consider how many employees answered him, what their job responsibilities are, and what goals must be met. A manager in engineering must separate the budget into suitable categories, such as product improvement, operating difficulties, and cost reduction. The deadline for each major work phase must be stated. COST CONTROL Because most G&A expenditure is more determined than variable, this assumption remains uncontrollable. Apart from certain top management salaries, most administrative costs are determined by management decisions. It is common to find heavy administrative costs when measured by the volume of business conducted. These costs, together with labor costs, have often made it difficult to price products competitively in the international market. G&A costs are close to top management; therefore, there is a strong tendency to ignore the magnitude and influence of earnings. Each administrative fee must be directly identified with the responsibility center, and the central manager must be responsible for planning and controlling expenses. This basic cost control is very important for administrative costs because there is often a failure to show responsibility for general expenses. For these and other reasons, many companies find it helpful to apply the concept of variable fixed costs to administrative costs. In such cases, variable costs are usually related to total dollar sales. This approach tends to emphasize that when the volume goes down, some of this expenditure must go down too, or if not, the profit potential is reduced. Central administration in any company, except for very small ones, is carried out in a number of special responsibility centers, such as the central administration, the control department, the treasury department, the human resources department, and the central staff. Thus, the overall administration costs budget includes several department budgets. Managers from each of these responsibility centers must be given primary responsibility for planning and controlling operations, including the necessary costs to be paid. General and Administrative Costs & General and Administrative Costs & 241 controls. The administrative costs budget for each responsibility center, after preparation by each manager, must be subject to approval by higher management in the same manner as was discussed for all other budgets. It is recommended to base budgeted administrative expenses on certain plans and programs. Past experience, adjusted for anticipated changes in management policies and general economic conditions, is very helpful. Because most administrative costs are set, historical record analysis will often provide a sound basis for budgeting. EMPLOYEES Certain individuals must be given responsibility and control over general and administrative costs. Furthermore, there must be a balance in workload among employees. Employee bonuses and incentives must be based on income. SUMMARY Productivity must always be maintained in the administrative field, so managers must exercise strict supervision. General and administrative expenditure budgets must be prepared and analyzed carefully, taking into account past history and the current environment. 242 & Fundamentals of Budgeting and Beyond & Fundamentals of Budgeting and Beyond 13 CHAPTER THIRTEEN Expenditures of Capital Assets to Be Purchased, Sold and Disposed C APITAL SHOPPING MUST BE consistent with C APITAL SHOPPING MUST BE consistent with C APITAL SHOPPING MUST BE consistent with C long-term plan pany. They are likely to generate revenue by providing additional income or reducing costs, such as when purchasing more efficient equipment and machinery results in lower maintenance expenses. They must produce adequate returns; therefore, the desired return on investment (ROI) must be determined. Capital expenditures include replacing machinery to save costs, expanding production to increase volume, marketing new products, improving the quality of products or services, and manufacturing under the proposed contract. Capital expenditures must take into account current and needed facilities, as well as commitments. Capital expenditure budgets reveal how much is needed to invest in capital assets to meet the goals of non-financial managers, so that divisions or departments can function properly. The budget breaks down capital assets based on the main categories, how much funds are needed, when funding is needed, the location of the assets, and the reasons and related comments. The time, nature, and adequacy of capital expenditures have a long-term impact on the central responsibility of the manager. Capital expenditures can occur due to growth, increased sales, increased production, changes in production methods, changes in style, costs 243 Fundamentals of Budgeting and Exceeding, Fourth Edition by Jae K. Shim, Joel G. Siegel and Allison I. Shim Copyright © 2012 Jae K. Shim, Joel G. Siegel, Allison I. Shim reduction, efficiency and effectiveness, productivity, product quality improvement, new business, normal replacement, preventive maintenance, and counteract competition. Capital expenditure budget depends on factors such as future potential, ROI, sales, profitability, productivity and efficiency, capacity utilization, payback period (how many years are needed to get back the initial investment), time of capital expenditure required, risk, technological obsolescence , diversification, safety issues, financial position (including cash flow, tax benefits and other government incentives), market share, new product development, maintenance and repair requirements, problem areas, replacement options, industry nature, economic conditions, political factor There are uncertain advantages to capital expenditure because of significant cash outlays and long periods of time. In fact, if for some reason capital expenditure fails, it is likely that losses will occur. The manager must prepare the capital expenditure budget required for his unit of responsibility after consulting with technical and technical staff. Capital assets cannot be purchased unless they have been included in the capital budget. Capital assets include equipment, furniture, machinery, storage facilities, distribution facilities, and computers. Capital expenditures must be approved only after detailed study and justification; after that, ongoing monitoring and control is recommended. Managers must make a priority list of capital projects based on income or strategic interests. Planning must consider the characteristics and characteristics of the industry and the company. Duplication of capital expenditure results in inefficiencies and excessive costs. Control is in the form of comparing budgeted expenditure with actual expenditure. The tendency of the ratio of insurance costs to the carrying value of capital assets, as well as the value of the insured relative to replacement costs, will indicate the adequacy of insurance coverage. The time of capital expenditure depends on the alternatives available, the start time, and funds. Managers must identify which capital expenditures are not important, which can be postponed for a reasonable time, and which are most needed. Some capital expenditures result in reduced profits, such as those required by law, which enhance research and development, and which improve employee morale. Some capital expenditure is needed by the government, such as for employee safety and to comply with building regulations. 244 & Fundamentals and Budgeting and Fundamentals and Funding Basics This chapter discusses the budget process, capital budget authorization, capital budget forms and reports (including special reports), budget revisions, capital expenditure analysis and evaluation, and controls. BUDGET PROCESS For budgeting, capital expenditure can be classified as normal or special. Normal expenses are routine, cheaper, and are carried out to maintain current operations. Individual projects usually do not involve large cash expenditures. Normal capital expenditure must meet the needs of the division or department manager. An example is the small replacement of the engine. Special capital expenditure is unusual, expensive, and is carried out for certain purposes, such as the purchase of a new machine to make products for special work that is only disposable. Large capital projects are usually planned and proposed by operations managers and must be approved by top management. Managers must budget properly and package capital expenditure. These expenses must be classified according to category, class, needs, consequences and eligibility. They may be needed or optional. In the case of small capital expenditures, division and department managers may have the authority to approve them themselves. The four steps in the capital expenditure process are: 1. Approve the project 1. Approve the project 2. Approve the estimate 2. Approve the estimate 3. Authorize the project 3. Authorize the project 4. Follow up 4. Follow up The capital expenditure proposal must contain a description, start date, date completion, information sources, and advantages and disadvantages of the proposal. Some capital expenditures, such as machinery and renovations are low cost, small and do not require detailed planning. They may be united with the appropriation of blankets. The capital expenditure policy must take into account: & the desired rate of return & the desired rate of return & the impact of costs & the cost impact of capital expenditure & capital expenditure & 245 & age of existing assets & age of existing assets & expected capacity of goods & expected capacity of goods & Asset life & Asset life & Growth potential & Growth potential & Employee availability & Employee availability & Competition & Competition & Business cycle stage & Business cycle stage & Legal liability exposure & Legal liability exposure & Regulatory requirements & Regulatory requirements Managers must assign priority rankings for capital expenditure in terms of operating needs and unnecessary. These dates must be considered: & Delivery date will be available & Delivery date will be available & Marketing schedule for products to be produced & Marketing schedule for products to be produced & Delivery date when goods are needed & Delivery date when goods are needed Current capital budget is usually includes three to five years in the annual segment of planned capital expenditure. AUTHORIZATION OF CAPITAL BUDGET If capital expenditure exceeds the permitted limit, special approval by top management is required. A project that does not meet expectations or which is no longer appropriate, given the current circumstances, can be canceled. It is better to cancel the project if the cost-benefit relationship shows that the project is no longer feasible. If a project is a succession of individual segments, partial authorization can be done. Figure 13.1 is an illustrated capital budget request schedule form. An authorization form must be filled in for approved capital expenditure. Reasons and objectives for expenditure must be given. Exhibits 13.2 and 13.3 are a form of illustration authorization. The authorized amount must be compared periodically with the actual costs incurred. In addition, commitments must be recorded and monitored because ultimately the amount determined can be exceeded. Estimated costs to complete must also be recorded, along with estimates of strengths or weaknesses. 246 & Funding Basics and Beyond & Fundamentals of Budgeting and Beyond 247 EXHIBITION 13.1 Request for Annual Capital Budget of Company ABC 2X12 EXHIBITION 13.1 Request for Annual Capital Budget of Company ABC 2X12 Description of ROI Allocation Total Commitment Total 2X11 2X12 Expected Capital Expenditure 2X11 Previous Year 2X12 This year 2X13 2X14 and thereafter Total Totally Required Conveyor Grinder Crusher Air Pollution Conveyor Required to Maintain Competitive Position Color Retention Quality Control Facilities Replacement Growth and Expansion DEF LMN Factory Recovery System Minimal but Recommended Lifting of Landscape Gardens Trucks Contingency Funding Total EXHIBITION 13.3 Authorization for Expenditures EXHIBITION EXHIBITION 13.3 Authorization Capital Expenditures Division: Date: Planting: Capital outlay is required because: (Check appropriate items) _____ New products _____ Sales volume increases _____ Normal replacement _____ New quality control standards _____ Modifications in the pro process duction _____ Style change _____ Description Cost reduction and Estimated Cost Estimated Labor Overhead Costs Possible Total Expected Return on Investment Payback Life Period Disposal Value Construction Period Manager’s Comments and Recommendations: Requested by: Approved by: EXHIBITION 13.2 Authorization of Expenditures Capital EXAMINATION 13.2s, and laws and regulations (for example, pollution requirements, limited use of assets). Authorization for Capital Expenditures Division Name: Division Number: Location: Date: Reasons for Authorization: Estimated Total Cost: Requested Item: Description: Estimated Cost Details: Comments and Recommendations: Approved Declined Date Reason Requested by: Approved by: 248 & Fundamentals and Budgeting Exceed & Funding Basics and Exceeds CAPITAL BUDGET FORM The request form must be completed and approved for capital expenditure. The commitment note contains the purchase order issued, and the appropriation form provides information about the benefits to be gained from the proposed project and the expected cost savings. Authorization establishes the type and scope of the project. Display 13.4 is a typical form of annual capital budget request. Display 13.5 is the initial illustrated budget request form. EXHIBITION 13.5 Information on Initial Budget Request EXHIBITION 13.5 Information on Initial Budget Request Division Name: Department Name: Date: Division Number: Department Number: Responsible Individual: Project Classification: Original Request or Additional Request: Requested Fund: Request Proposal: Time Schedule: Start Date: Expected End Date: Expected Benefits: Priority Level: Expected Returns: Approval: EXHIBITION 13.4 Annual Capital Budget Request Form PAMERAN 13.4 Annual Capital Budget Request Form Allocation Description of Capital Allocation Description Expenditure of Future Commitments of Capital Expenditure & Capital Expenditure & 249 The appropriation request form is filled out in detail by the responsibility unit manager, provides justification to support the capital proposal and thoroughly assesses the proposed capital project. The proposal form for capital expenditure can include the project title, project objectives, project description, proposed budget, analysis and evaluation, supporting documentation and calculations, justification, and estimated time. Figures 13.6, 13.7, and 13.8 present a typical allocation request form. The capital budget form summarizes the proposed capital projects for the period by the responsibility center. Figure 13.9 presents the form of an illustrated capital budget. CAPITAL BUDGET The capital asset budget includes initial balance, addition, write-off, depreciation, construction in progress, and ending balance. The budget format should include category, class, project title, project number, project age, capital EXHIBITION 13.6 PAMERAN Takeover Request Form 13.6 Division Takeover Request Form: Project Description: Department: Project location: Unit of Responsibility: Expected Expenditure Amount Initial Request: Amount Approved to Date: Future Request: Total Project Cost: Return on Investment: Payback Period: Net Present Value: Internal Rate of Return: Background Information: Recommendation: Classification: Proposal Capital Properties: 250 & Funding Basics and Exceeds & Funding Basics and Exceeds EXHIBITION 13.8 Request for Capital Expenditure EXHIBIT 13.8 Form Capital Expenditure Request Responsibility Unit Name: Responsibility Unit Number: Time Period: Description Quantity Justification Cost Budgeted Date of purchase Prepared by: Date: Approved by: Date: EXHIBITION 13.7 Information on Initial Budget Request PAMERAN 13.7 Information on Initial Budget Request Date: Division name : Department name: Division Number: Department Number: Type of New Capital Expense Reduction of Expansion Costs Other (Remarks) Reimbursement Request: Initial Additional Priority Classification: Proposal Description: Identification of Expenditures: Expected Return: Cash Expected (net) Expected: Schedule Time: Agreement Department manager: Date: Division Manager: Date: Vice President: Date: Comments: Capital Expenditure & Capital Expenditures & 251 costs, and return on investment. The budget must contain provisions for explanatory comments. Extraordinary repairs are usually included in the capital expenditure budget, but ordinary repairs are included in the expenditure budget. Production budgets may require additional capital. Exhibits 13.10 through 13.16 present an illustrated capital budget. EXHIBITION 13.10 Capital Expenditure Budget for the Year Ended EXHIBITION 13.10 Capital Expenditure Budget for the Year Ended December 31, 2X12 Machine $ 1,500,000 Equipment 800,000 Furniture and Equipment 200,000 Total $ 2,500,000 EXHIBITION 13.9 Capital Budget Form EXHIBITION 13.9 Capital Budget Form Item Department Item Description Department Item Description Status Number of Expenditures Expected rate of return Classification Expected rate of return Classification Priority EXHIBITION 13.11 Capital Expenditure Budget EXHIBITION 13.11 Capital Expenditure Budget Goods To Maintain Current Operations Expand Total A $ 300,000 $ 200,000 $ 500,000 C 100,000 50,000 150,000 Equipment 150,000 100,000 250,000 Total $ 550,000 $ 350,000 $ 900,000 252 & Funding Basics and Exceeding & Funding Basics and Exceeds 253 EXHIBITIONS 13.12 Initial Capital Budget EXHIBITION 13.12 Initial Capital Budget Projected Unit Total Cost Classi fi ed by Date of Expenditure Estimated Expenditures 2X10–2X13 Classification by Accounting Disposition Expense Item Number Work Order Number Appropriation Number Desctríption of Job by Department Before 2X10 2X11 2X12 2X13 After 2X13 Additional Facilities Replacements Rehabilitation Repairs Other EXHIBITIONS 13.13 EXHIBITION EXPANSION NUMBER OF DEPARTMENTS BY DEPARTMENT BEFORE 2X10 2X11 2X12 2X13 After 2X13 Additional Facilities Replacements Rehabilitation Repairs Other EXHIBITIONS 13.13 EXHIBITION EXPANSION NUMBER Not Spent Actual Balance of Expenditure Amount Dependent Authorization Amount Spent EXHIBITION 13.14 Capital Expenditure Budget EXHIBITION 13.14 Capital Expenditure Budget Amount to be spent per Next Quarter 1 2 3 4 Total Approved Project Period: Proposed New Project: Proposed Replacement: 254 & Fundamentals Budgeting and Exceeds & Fundamentals Budgeting and Exceeding 255 EXHIBIT 13.15 Capital Asset Budget Division X EXHIBIT 13.15 Capital Asset Budget Division X Type of Project Carry Forward Amount Commitments Expenditures Carry Forward to Future Years New Commitments Total Amount Availabl e On Previous Years’ Commitments Current Year Authorization Total for Year Capital Expenditures Capital Leases CAPITAL EXPENDITURE REPORTS Capital expenditure reports must contain authorized amounts, actual costs, commitment funds, unencumbered balances, estimated costs to settle, and underrun costs . Exhibit 13.17 presents a report on the capital expenditure process. Figures 13.18 and 13.19 present a typical report showing the comparison of budgeted expenditure with actual expenditure. Exhibit 13.20 presents a report on capital expenditure status. This report must be prepared periodically by the manager to track the project and facilitate analysis and control. Progress reports must be prepared to determine whether all is going according to plan and what corrective actions are needed, if any. Detailed evaluation of capital expenditure may not be possible when sudden, unexpected or important developments occur. An example is engine damage that results in production delays on the assembly line. EXHIBITION 13.16 Budget for Capital Assets EXHIBITION 13.16 Budget for Capital Assets Classification Amount at the Beginning of the Year Addition of Reduction of Depreciation Addition of Reduction of Amount of Depreciation at the End of 256 & Budgeting and Exceeding Basics & Funding Basics and Exceeds 257 EXHIBIT 13.17 Capital Expenditures In-Process EXHIBIT Report 13.17 Capital Expenditures In-Process Report Item Number Description For Approval Amount Initial Expected Project Expected Project Completion Date Incurred to Date Balance for Completion Total Expected Variation Favorable or Unfavorable Expected Completion Date Comments The report on capital expenditure progress monitors the progress of each project and indicates the existence of an Incurred to Date Balance for Completion strengths or weaknesses. Exhibits 13.21 to 13.26 present a representative report. BUDGET REVISION The capital budget must be revised when errors are discovered or circumstances change. Revisions will be needed for changes in estimated costs, unexpected EXHIBITION 13.19 Capital Expenditure Performance Report – Estimated versus Actual EXHIBITION 13.19 Capital Expenditure Performance Report – Estimated versus Actual Department Name: Department Number: Authorization Number: Description: Today Date: Activity Date Start: Item Official Cumulative Amount of Variance Actual Percentage Reason A $ 100,000 $ 103,000 $ 3,000 3 Delayed due to an attack B $ 80,000 $ 81,000 $ 1,000 1.25 Higher prices for component parts, etc. EXHIBITION 13.18 Comparison of Year-to-Date Budgets with Actual Capital Expenditures EXHIBITION 13.18 Comparison of Year-to-Date Budgets with Actual Capital Expenditures Project Types Budgeted Projects Not Budgeted Total Projects Not Budgeted Total Actual Budgeted Expenditures Over Budget 258 & Basis Basis for Budgeting and Beyond & Basis for Budgeting and Beyond developments in the economy, changes in design, technological developments, actions by competitors, changes in division or departmental goals, and loss of victims. SPECIAL PROJECTS Special capital expenditures involve large amounts of cash that are not routine, for certain large projects. An example is the purchase of a new machine to meet customer demand. Optional projects include equipment replacement, capital expansion, modification techniques, and new ventures. Capital expenditures must be consistent with the return on investment the manager wants. EXHIBITION 13.20 Information on Capital Expenditure Performance Report EXHIBITION 13.20 Information on Capital Expenditure Performance Report Information Cost Amounts Budgeted Actual Cumulative Expenditures Commitment Amount Expected Expected Expenses to be Resolved Variance between Budget Date and Actual Amount Start Date Expected Settlement Date Day Pending Reason for Settlement Deadline Percentage Time Completed Until Percentage Date Costs Completed Until Date Comment Explanation Quality of Events and Unusual Reasons Completion Date Cumulative Expenditures to Date Amount Needed for Completion Total Actual Expenditures Budgeted ExpendituresVariance Comments 261 EXHIBIT 13.22 ABCM Manufacturing Company EXHIBIT 13.22 ABCM Manufacturing g Company Department and Cost Authorized Amount Cumulative Expenditures to Date Purchase Commitments Total Expenditures and Commitments Balance Remaining Research Salaries $ 60,000 $ 50,000 $ 4,000 $ 54,000 $ 6,000 Supplies 80,000 70,000 7,000 77,000 3,000 Power etc. etc. etc. etc. etc. Total Development Salaries Traveling Other Total Patent Legal Fees Application Fees Total Administrative Salaries Depreciation Total