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Exercise 20-3_Exercise22-1_Exercise23-3_Exercise23-4_Exercise23-6

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Question;Exercise 20-3;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. Billable hours for each department, by quarter, are;provided below.;Department;Quarter 1;Quarter 2;Quarter 3;Quarter 4;Auditing;2,360;1,960;2,370;2,730;Tax;3,200;2,740;2,240;2,690;Consulting;1,680;1,680;1,680;1,680;Average hourly billing rates are: auditing $81, tax $94, and consulting $105.;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.;Exercise22-1;Stanton;Company is planning to produce 2,600 units of product in 2012. Each unit;requires 2.00 pounds of materials at $7.70 per pound and a half-hour of labor;at $13.00 per hour. The overhead rate is 40% of direct labor.(a)Compute the budgeted amounts for 2012 for;direct materials to be used, direct labor, and applied overhead.;(b)Compute the standard cost of one unit of;product.(Round answer to 2 decimal places, e.g. 2.75.);Exercise23-3;In;Harley Company it costs $29 per unit ($19 variable and $10 fixed) to make a;product that normally sells for $46. A foreign wholesaler offers to buy 3,080;units at $25 each. Harley will incur special shipping costs of $1 per unit.;Assuming that Harley has excess operating capacity.;Indicate the net income (loss) Harley would realize by accepting the special;order.(If an amount reduces the net income for Increase;(Decrease) column then enter with a negative sign preceding the number e.g.;-15,000 or parenthesis, e.g. (15,000). Enter all other amounts in all other;columns as positive and subtract where necessary.);Exercise23-4;Vintech;Manufacturing incurs unit costs of $7 ($4 variable and $3 fixed) in making a;subassembly part for its finished product. A supplier offers to make 13,000 of;the part at $5.70 per unit. If the offer is accepted, Vintech will save all;variable costs but no fixed costs.;Prepare an analysis showing the total cost saving, if any, Vintech will realize;by buying the part.(If an amount reduces the net income for Increase;(Decrease) column then enter with a negative sign preceding the number e.g.;-15,000 or parenthesis, e.g. (15,000). Enter all other amounts in all other;columns as positive and subtract where necessary.);Exercise23-6;Ridley;Company has a factory machine with a book value of $86,000 and a remaining;useful life of 5 years. A new machine is available at a cost of $222,200. This;machine will have a 5-year useful life with no salvage value. The new machine;will lower annual variable manufacturing costs from $574,400 to $380,200.;Prepare an analysis showing whether the old machine should be retained or;replaced.(If an amount reduces the net income for Increase;(Decrease) column then enter with a negative sign preceding the number e.g.;-15,000 or parenthesis, e.g. (15,000). Enter all other amounts in all other;columns as positive and subtract where necessary.)

 

Paper#37383 | Written in 18-Jul-2015

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