Wileyplus Assignment Week 6 Answers Acc 561

Unformatted text preview: *Exercise 20-3 Your answer is correct. Garza and Neely, CPAs, are preparing their service revenue (sales) budget for the coming year (2012]. The practice is divided into three departments: auditing, tax, and consulting. Biliabie hours for each department, by quarter, are provided below. Auditing 2,410 1,710 2,130 2,720 Tax 3,370 2,640 2,200 2,730 Consulting 1,900 1,900 1,900 1,900 Average hourly billing rates are: auditing $83, tax $93, and consulting $104. Prepare the service revenue (sales) budget for 2012 by listing the departments and showing for each quarter and the year in total, billable hours, billable rate, and total revenue. GARZA AND NEELVl CPAS sala Revenue Budget For the Year Ending Deounher 31, 2012 Audltmg 2410 s 03 s 200030 1710 583 s 141930 Tax 3370 93 313410 2640 93 245520 COWIIN 1900 104 7197600 71900 104 7 197600 0 711040 0505050 GARZA AND NEELV, CFAS Sala Revenue Budget Fur the Year Ending December 31, 2012 Auditing 2130 1; 03 3 176790 2720 g 03 3 225760 . Tax 2200 93 204600 2730 93 253090 I Cuflsuiting 1900 104 7197600 1900 104 7197600 $570990 0 677250 GARZA AND NEELY, (3PM Sale Revenue Budget For the Year Ending December 31, 2012 Auditing 3970 $ 83 $ 744510 Tax 10940 93 1017420 Cunmiting 7500 104 7 790400 w 50 I utlon L05 Exercise 20-3 Billahle Hours Auditing = 2,410 + 1,?10 + 2,130 + 2,?20 = 8,9?[1 Tax = 3,3?0 + 2,040 + 2,200 + 2,?30 = 10,940 Consulting = 1,900 x 4 = 11,600 Exercise 22—1 Your answer is correct. Stanton Company is planning to produce 1,500 units of product in 2012. Each unit requires 3.30 pounds of materials at $6.00 per pound and a half-hour of labor at $13.80 per hour. The oyerhead rate is 50% of direct labor. [a] Compute the budgeted amounts for 2012 for direct materials to he used, direct labor, and applied oyerhead. Direct materials $1 29mm Direct labor 5 10350l Dyerh ead a 5 1?5 [h] Compute the standard cost of one unit of product. [Round answer to 2 decinsa! places, {3.9. 2.75.) Standard cost a 3mm SHOW SOLUTION EHDWANEWER LINKTDTEIT LINKTDTEH By accessing this Question Assistance, you Iwill learn Iwhile you earn points based on the Point Potential Policy set by your instructor. Solution Exercise 22-1 {a} Direct materials: {1,500 x 3.30] x $6.00 = $29,100 Direct Iabcr: {1,500 x 1,I'2] x $13.30 = $10,350 Overhead: $10,350 x 50% = $5,115 {h} Direct materials: 3.30 x $6.00 = $19.80 Direct Iabcr: 1,:‘2 x $13.30 = 6.90 Overhead: $6.90 :1 50% = 3.45 Standard cost: $30.15 Brief Exercise 23-3 In Harley Company it costs $30 per unit ($17 variable and $13 fixed] to make a product that normally sells for $54. Aforeign wholesaler offers to buy 4,870 units at $24 each. Harley will incur special shipping costs of $2 per unit. Assuming that Harley has excess operating capacity. Indicate the net income (loss) Harley would realize by accepting the special order. (If an amountreduces the net income for Increase (Decrease) coiumn then enter with a negative sign preceding the number e.g. 715,000 or parenthesis, e.g. (15,000). Enter at} other amounls in ail other columns as positive and subtract where necessary.) Revenues s [I sl 116,800 s 1.1.6.880 Costs—Manufacturing a I 92.790 (52,790) Shipping 0 | 9,740 (9,740) Net incomeflluss) $ [I 3 24,350 $ 24,350 111a special order should he alcm|jtsflj ' . Brief Exercise 234 Your answer is correct. 1u'intcch Manufacturing incurs unit costs of $3? ($5 variable and $2 fixed) in making a suhassemhlv part for its finished product. A supplier offers to make 16,300 of the part at $5.90 per unit. If the offer is accepted, 1u'intcch will save all variable costs but no fixed costs. Prepare an analvsis showing the total cost saving, if anv, 1u'intcch will realize hv huving the part. [If an amount reduces the net income for Increase [Decrease] coiumn then enter with a negative sign preceding the number e.g. 215,000 or parenthesis, e.g. [15,000]. Enter aii other amounts in aii other coiumns as positive anclI suh tract where necessary.) ‘ul'arialole man ufactu ring $ $ $ “33 s15oo o 3150:: Fixed manufacturing costs T 325.30 T 32500 1 0 Purchase price i p i 951m i -951?0 $ $ $ Total annual cost i 114100 i 123??U i -14E?U u“ The decision should loe to make the Part ' . Brief Exercise 23—6 Your answer is correct. Ridlev Companv has a factory machine with a book value of $83,800 and a remaining useful life of E vears. A new machine is available at a cost of $208,200. This machine will have a 5-year useful life with no salvage value. The new machine will lower annual variahle manufacturing costs from $549,900 to $411,200. Prepare an analvsis showing whether the old machine should be retained or replaced. [Han anmunt reduces the net income for Increase {Den-ease) whian then enter with a negative sign preceding the number e.g. —15,000 or parenthesis, e.g. [15,000]. Enter aii other anmunts in aii other miunlns as positive andI suh tract where necessary.) ‘ul'arialole manufacturing $ $ $ “3'3 3399400 245nm 1432on NewmaChinemst o zoszoo -2oszoo $ $ $ Total i 3399400 i 25?5400 i 1224000 u“ The old factorv machine should be . Solution Brief Exercise 23-6 *$238,?00 I I5 = $1,432,200 111s old factoryr machine should be replaced. ...
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Question 1

Garza and Neely, CPAs, are preparing their service revenue (sales) budget for the coming year (2!2)"#he practice is divided into three departments$ auditing, ta%, and consulting" &illable hours for each department, by 'uarter, are provided belo"

DepartmentQuarter 1Quarter 2Quarter 3Quarter 4

Auditing2,*!,+*2,!2,#a%*,*-2,+.2,22,/*Consulting!,+2!,+2!,+2!,+2Average hourly billing rates are$ auditing 0/, ta% 0.*, and consulting 0!2"Prepare the service revenue (sales) budget for 2!2 by listing the departments and shoing for each 'uarter and the year in total, billable hours, billable rate, and total revenue"

GARZA AND NEELY, CPAsSales Revenue BudgetFor the Year Ending Dece!er "#, $%#$&uarter #&uarter $De't(Billa!le)oursBilla!le Rate*otal Rev(Billa!le)oursBilla!le Rate*otal Rev(

Auditing

0000

 TaxConsulting$$

GARZA AND NEELY, CPAsSales Revenue BudgetFor the Year Ending Dece!er "#, $%#$&uarter "&uarter +De't(Billa!le)oursBilla!le Rate*otal Rev(Billa!le)oursBilla!le Rate*otal Rev(

Auditing0000#a%Consulting

$$

GARZA AND NEELY, CPAs

2,43084 204,120 1,73084 145,3203,350 93 311,550 2,790 93 259,4701,720 102 175,440 1,720 102 175,440691,110 580,2302,16084 181,440 2,66084 223,4402,26093 210,1802,83093 263,1901,720102 175,4401,720102 175,440567,060 662,070

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