Forester and Cohen is a small accounting firm, managed by Joseph Cohen since the retirement in December of his partner Brad Forrster Cohen and his 3 CPAS together bill 640 hours per month. When Cohen or another accountant bills more than 160 hours per month, he or she gets an additional "overtime" pay of $63.80 for each of the extra hours: this is above and beyond the $5. 100 salary each draws during the month. (Cohen draws the same base pay as his employees.) Cohen strongly discourages any CPA from working (biling) more than 245 hours in any given month. The demand for billable hours for the firm over the next 6 months is estimated below Month Estimate of Billable Hours Jan 600 Feb 500 Mar 1,020 Apr. May June 1,210 660 590 Cohen has an agreement with Forrester, his former partner, to help out during the busy tax season, up to 245 hours in any given month if needed, for an hourly fee of $135. Cohen will not even consider laying off one of his colleagues in the case of a slow economy He could, however, hire another CPA at the same salary, as business dictates a) Develop an aggregate plan for the 6-month period (enter your responses as whole numbers). Use regular time, then overtime, then Forrester, and then hire additional CPAS if needed Note: For the CPA column, anly include Cohen, his 3 CPAS, and any new CPAS he may hire in your total. Do NOT inciude Forrester Estimate of Billable Hours "Overtime" Reg. time billable hours Reg. time cost Forrester Month "Overtime" cost Forrester cost CPAS hours hours Jan 600 Feb. 500 Mar 1,020 IS Apr. 1210 May 660 June 590 b) Compute the cost of Cohen's plan of using overtime and Forrester. The cost of Cohen's plan is $_ (enter your response as a whole number). c) Should the firm remain as is, with a total of 4 CPAS? OA. The firm should remain as it is O B. The firm should not remain as it is OC. One would have to carefully examine the other 6 months to see if hiring is merited.
Forester and Cohen is a small accounting firm, managed by Joseph Cohen since the retirement in December of his partner Brad Forrster Cohen and his 3 CPAS together bill 640 hours per month. When Cohen or another accountant bills more than 160 hours per month, he or she gets an additional "overtime" pay of $63.80 for each of the extra hours: this is above and beyond the $5. 100 salary each draws during the month. (Cohen draws the same base pay as his employees.) Cohen strongly discourages any CPA from working (biling) more than 245 hours in any given month. The demand for billable hours for the firm over the next 6 months is estimated below Month Estimate of Billable Hours Jan 600 Feb 500 Mar 1,020 Apr. May June 1,210 660 590 Cohen has an agreement with Forrester, his former partner, to help out during the busy tax season, up to 245 hours in any given month if needed, for an hourly fee of $135. Cohen will not even consider laying off one of his colleagues in the case of a slow economy He could, however, hire another CPA at the same salary, as business dictates a) Develop an aggregate plan for the 6-month period (enter your responses as whole numbers). Use regular time, then overtime, then Forrester, and then hire additional CPAS if needed Note: For the CPA column, anly include Cohen, his 3 CPAS, and any new CPAS he may hire in your total. Do NOT inciude Forrester Estimate of Billable Hours "Overtime" Reg. time billable hours Reg. time cost Forrester Month "Overtime" cost Forrester cost CPAS hours hours Jan 600 Feb. 500 Mar 1,020 IS Apr. 1210 May 660 June 590 b) Compute the cost of Cohen's plan of using overtime and Forrester. The cost of Cohen's plan is $_ (enter your response as a whole number). c) Should the firm remain as is, with a total of 4 CPAS? OA. The firm should remain as it is O B. The firm should not remain as it is OC. One would have to carefully examine the other 6 months to see if hiring is merited.
Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
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Transcribed Image Text:Forrester and Cohen is a small accounting firm, managed by Joseph Cohen since the retirement in December of his partner Brad Forrester. Cohen and his 3 CPAS together bill 640 hours per month. When Cohen or another accountant bills more than 160 hours per month, he or she gets an additional "overtime" pay of $63.80
for each of the extra hours: this is above and beyond the $5,100 salary each draws during the month. (Cohen draws the same base pay as his employees.) Cohen strongly discourages any CPA from working (billing) more than 245 hours in any given month. The demand for billable hours for the firm over the next 6 months is
estimated below:
Month
Estimate of Billable Hours
Jan.
600
Feb.
500
Mar.
1,020
Apr.
1,210
May
660
June
590
Cohen has an agreement with Forrester, his former partner, to help out during the busy tax season, up to 245 hours in any given month if needed, for an hourly fee of $135. Cohen will not even consider laying off one of his colleagues in the case of a slow economy. He could, however, hire another CPA at the same salary, as
business dictates.
a) Develop an aggregate plan for the 6-month period (enter your responses as whole numbers). Use regular time, then overtime, then Forrester, and then hire additional CPAS if needed.
Note: For the CPA column, only include Cohen, his 3 CPAS, and any new CPAS he may hire in your total. Do NOT include Forrester.
Estimate of
Reg. time
billable hours
"Overtime"
Forrester
Month
Billable
СPAS
Reg. time cost
"Overtime" cost
Forrester cost
hours
hours
Hours
Jan.
600
IS
Feb.
500
IS
IS
Mar.
1,020
Аpг.
1,210
May
660
June
590
b) Compute the cost of Cohen's plan of using overtime and Forrester.
The cost of Cohen's plan is $
(enter your response as a whole number).
c) Should the firm remain as is, with a total of 4 CPAS?
O A. The firm should remain as it is.
O B. The firm should not remain as it is.
O C. One would have to carefully examine the other 6 months to see if hiring is merited.
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