ACC 561 Week 6 Assignment WileyPLUS

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S 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   2,560   1,75
0   2,200   2,740 Tax   3,110   2,750   2,140   2
,790 Consulting   1,780   1,780   1,780   1,780
Average hourly billing rates are auditing 82,
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.   Exercise
22-1 
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Stanton Company is planning to produce 2,100
units of product in 2012. Each unit requires 3.60
pounds of materials at 6.60 per pound and a
half-hour of labor at 15.40 per hour. The
overhead rate is 70 of direct labor. (a) Compute
the budgeted amounts for 2012 for direct
materials to be used, direct labor, and applied
overhead.Direct materials           Direct
labor           Overhead           (b) Compute
the standard cost of one unit of product. (Round
answer to 2 decimal places, e.g. 2.75.)Standard
cost           Brief Exercise 23-3 In Harley
Company it costs 32 per unit (18 variable and
14 fixed) to make a product that normally sells
for 55. A foreign wholesaler offers to buy 4,950
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.)        Reject
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Order        AcceptOrder        Net
IncomeIncrease(Decrease)Revenues            
          CostsManufacturing              
                   Shipping                  
    Net income/(loss)                    
  The special order should be   .   Brief
Exercise 23-4  Vintech Manufacturing incurs unit
costs of 7 (5 variable and 2 fixed) in making
a subassembly part for its finished product. A
supplier offers to make 10,200 of the part at
5.80 per unit. If the offer is accepted, Vintech
will save all variable costs but no fixed
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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.)        Make      
 Buy        Net IncomeIncrease(Decrease)Variab
le manufacturing costs                    
  Fixed manufacturing costs                    
  Purchase price                          
Total annual cost                       The
decision should be to   .
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Brief Exercise 23-6 Ridley Company has a
factory machine with a book value of 87,300 and
a remaining useful life of 4 years. A new machine
is available at a cost of 207,600. This machine
will have a 4-year useful life with no salvage
value. The new machine will lower annual variable
manufacturing costs from 630,200 to
442,700. 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.)         RetainEquipment      
  ReplaceEquipment        Net 4-YearIncomeIncre
ase(Decrease)Variable manufacturing costs      
                New machine cost        
               
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  Total                       The old
factory machine should be   .     For more
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