Question

Your team is to prepare a budget report outlining the costs of attending college (full-time) for the next two semesters (30 hours) or three quarters (45 hours). This budget’s focus is solely on attending college; do not include personal items in the team’s budget. Your budget must include tuition, books, supplies, club fees, food, housing, and all costs associated with travel to and from college. This budgeting exercise is similar to the initial phase in activity-based budgeting. Include a list of any assumptions you use in completing the budget. Be prepared to present your budget in class.

Short answer

The costs for two and three semesters are $69,500 and $104,250, respectively.

Step-by-step solution

Meaning of Budget

A budget is a forecasted statement prepared by the management of the business for the futureand used as an internal tool. Budgeting is the practice of planning for the future. It helps the managers to maintain control over the organization's operations.

Preparing a budget

Assumptions, Suppose these are the expenses for two-semester

Tuition fees are $40,000.

Book expenses are $2,000.

Supplies expenses are $5,000.

Club fees are $2,500.

The food cost is $7,000.

The housing cost is $10,000.

Travel expenses are $3,000.

Three-semester expenses are 1.5 times two-semester expenses.

College Cost Budget
Expenses	Two Semester ($)	Three Semester ($)
Tuition fees	40,000	60,000
Book expenses	2,000	3,000
Supplies expenses	5,000	7,500
Club fees	2,500	3,750
The food cost	7,000	10,500
The housing cost	10,000	15,000
Travel expenses	3,000	4,500
Total	69,500	104,250