Given the following information, construct a program budget.
Allocate nonsalary costs on the basis of the relative number of
positions in each program. Note: The dispatchers and prevention
inspectors report to the chief.
Average Total
Position Number Salary per Position
Chief 1 $42,000 $42,000
Secretary 1 18,500 18,500
Captain 2 36,000 72,000
Lieutenant 4 32,000 128,000
Equipment operator 6 26,000 156,000
Firefighter 18 24,000 432,000
Prevention inspector 4 24,000 96,000
Dispatcher 4 20,000 80,000
$1,024,500
Total Expenditures
Salaries $1,024,500
Supplies and services 220,000
Capital outlay 150,000
$1,394,500
Performance Data
Administrative hours 4,160
Fire prevention inspections 200
Emergency dispatches 720
Fire loss $3,400,000
Response time 4 minutes
Fire responses 152
To construct a program budget, we need to allocate the nonsalary costs based on the relative number of positions in each program. Let's calculate the percentage each position contributes to the total number of positions, and then use that percentage to allocate the nonsalary costs.
First, let's calculate the total number of positions:
Total positions = Number of Chiefs + Number of Secretaries + Number of Captains + Number of Lieutenants + Number of Equipment operators + Number of Firefighters + Number of Prevention inspectors + Number of Dispatchers
Total positions = 1 + 1 + 2 + 4 + 6 + 18 + 4 + 4 = 40
Next, let's calculate the percentage each position contributes to the total number of positions:
Percentage = (Number of Positions / Total Positions) * 100
Percentage for each position:
Chief: (1 / 40) * 100 = 2.5%
Secretary: (1 / 40) * 100 = 2.5%
Captain: (2 / 40) * 100 = 5%
Lieutenant: (4 / 40) * 100 = 10%
Equipment operator: (6 / 40) * 100 = 15%
Firefighter: (18 / 40) * 100 = 45%
Prevention inspector: (4 / 40) * 100 = 10%
Dispatcher: (4 / 40) * 100 = 10%
Now, let's allocate the nonsalary costs based on these percentages:
Supplies and services budget: (Supplies and services expenditure) * (Percentage for each position)
Supplies and services budget = $220,000
Percentage for each position:
Chief: 2.5% of $220,000 = $5,500
Secretary: 2.5% of $220,000 = $5,500
Captain: 5% of $220,000 = $11,000
Lieutenant: 10% of $220,000 = $22,000
Equipment operator: 15% of $220,000 = $33,000
Firefighter: 45% of $220,000 = $99,000
Prevention inspector: 10% of $220,000 = $22,000
Dispatcher: 10% of $220,000 = $22,000
Capital outlay budget: (Capital outlay expenditure) * (Percentage for each position)
Capital outlay budget = $150,000
Percentage for each position:
Chief: 2.5% of $150,000 = $3,750
Secretary: 2.5% of $150,000 = $3,750
Captain: 5% of $150,000 = $7,500
Lieutenant: 10% of $150,000 = $15,000
Equipment operator: 15% of $150,000 = $22,500
Firefighter: 45% of $150,000 = $67,500
Prevention inspector: 10% of $150,000 = $15,000
Dispatcher: 10% of $150,000 = $15,000
Now we can construct the program budget:
Program Budget:
Chief:
- Salary: $42,000
- Supplies and services: $5,500
- Capital outlay: $3,750
Secretary:
- Salary: $18,500
- Supplies and services: $5,500
- Capital outlay: $3,750
Captain:
- Salary(2 positions): $72,000
- Supplies and services: $11,000
- Capital outlay: $7,500
Lieutenant:
- Salary(4 positions): $128,000
- Supplies and services: $22,000
- Capital outlay: $15,000
Equipment operator:
- Salary(6 positions): $156,000
- Supplies and services: $33,000
- Capital outlay: $22,500
Firefighter:
- Salary(18 positions): $432,000
- Supplies and services: $99,000
- Capital outlay: $67,500
Prevention inspector:
- Salary(4 positions): $96,000
- Supplies and services: $22,000
- Capital outlay: $15,000
Dispatcher:
- Salary(4 positions): $80,000
- Supplies and services: $22,000
- Capital outlay: $15,000
Total Expenditures:
Salaries: $1,024,500
Supplies and services: $220,000
Capital outlay: $150,000
Total Budget: $1,394,500