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Joleen Harmon, CPA, has two clients. Client A requires 20 hours of partner time and 100 hours of staff time.

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Question;1. Joleen Harmon, CPA, has two clients. Client A requires 20 hours of partner time and 100hours of staff time. Client B will use 12 hours of partner time and 80 hours of staff time.Partners are paid $85 an hour and bill support time at 60% of their hourly rate. Staff arepaid $25 an hour and bill support time at $20 per billable hour.On a separate sheet of paper, calculate the total charge to each of these clients if profit isadded at 20% over cost. Label each answer carefully and show all of your work. (Thisquestion is worth 10 points.)2. The Tijama Manufacturing Company has determined the cost of manufacturing a unit ofproduct to be as follows, based on annual production of 50,000 units per year:Direct materials $20.00Direct labor 15.00Variable factory overhead 10.00Fixed factory overhead 12.00Operating statistics for the month of August and September are as follows:August SeptemberUnits produced 4,200 3,500Units sold 3,500 4,200Selling and administrative expenses $25,000 $35,000The selling price is $75 a unit. There were no inventories on August 1, and there is nowork in process at September 30.Prepare comparative income statements for each month under both absorption costingand direct costing. Use the forms at the end of this examination to complete this problem.(This question is worth 25 points.)3. The Donal Company has sales of $800,000, variable costs of $300,000, and fixed costsof $250,000.On a separate sheet of paper, compute the following. Label each answer carefully andshow all of your work.a. Contribution margin ratiob. Break-even sales volumec. Margin of safety ratiod. Net income as a percentage of sales(This question is worth 20 points, 5 points for each part.)4. Complete Problem 9-6 on page 416 in your textbook. Use theforms provided in the Study Guide/Working Papers booklet onpages WP-283 and WP-284. (This question is worth 25 points.)5. Complete the Chapter 10 Mini-Case on page 461 in yourtextbook. Use a separate sheet of paper. Label each answerand show all of your work. (This question is worth 20 points.)

 

Paper#44401 | Written in 18-Jul-2015

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