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The following First Quarter projected information is provided for Colossal Marketing, a Service Business that provides creative Marketing services to its clients:

1. In January it is expected that the Business will complete 260 hours of work for its clients and charge them a 300% Mark up on all Direct Labour Costs
2. In February it is expected that the Business will complete 280 hours of work for its clients and charge them a 300% Mark up on Direct Labour Costs
3. In March it is expected that the Business will complete 250 hours of work for its clients and charge them a 300% Mark up on Direct Labour Cost

1. The following Direct Labour Hours and Rates are expected to be incurred each month:

Hourly Pay January Feb March

Account Managers $70 80 hours 50 60

Creative and Art Directors. $50 120 hours 150 130

Media Buyers $40 60 hours 80 60

Other Direct Costs

Courier charges are expected to be $1.50 per Direct Labour Hour incurred

General Fixed Overhead

Management estimates that total General Fixed Overhead for the year will be $120,000 and the estimated total Direct Labour Hours for the year will be 3,000.

Management allocates General Fixed Overhead to Jobs based upon a Predetermined Overhead Rate using the Allocation base: Estimated Direct Labour Hours.

REQUIRED: Using a Spreadsheet or Word document, prepare the following detailed Budgets on a Monthly basis for the First Quarter ending March 31^st:

-Service Revenue Budget

-Direct Labour Budget

-General Fixed Overhead Budget to be Allocated

-Budgeted Income Statement

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