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Description / Instructions: Complete the following in WileyPLUS: *Exercises: 20-3 *Exercises: 22-1 *Brief Exercise 23-3 *Brief Exercise 23-4 *Brief Exercise 23-6
Question 1
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
2,470
1,990
2,180
2,690
Tax
3,110
2,750
2,360
2,770
Consulting
1,670
1,670
1,670
1,670
Average hourly billing rates are: auditing $84, tax $93, and consulting $103. 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 NEELY, CPAs Sales Revenue Budget For the Year Ending December 31, 2012
Quarter 1
Quarter 2
Dept.
Billable Hours
Billable Rate
Total Rev.
Billable Hours
Billable Rate
Total Rev.
Auditing
$
$
$
$
Tax
Consulting
$
$
GARZA AND NEELY, CPAs Sales Revenue Budget For the Year Ending December 31, 2012
Quarter 3
Quarter 4
Dept.
Billable Hours
Billable Rate
Total Rev.
Billable Hours
Billable Rate
Total Rev.
Auditing
$
$
$
$
Tax
Consulting
$
$
GARZA AND NEELY, CPAs Sales Revenue Budget For the Year Ending December 31, 2012
Year
Dept.
Billable Hours
Billable Rate
Total Rev.
Auditing
$
$
Tax
Consulting
$
Question 2
Stanton Company is planning to produce 2,900 units of product in 2012. Each unit requires 2.10 pounds of materials at $6.60 per pound and a half-hour of labor at $13.00 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….