Mansfield Information Systems (MIS) is an IT support firm. Managers and staff are billed to clients on an hourly basis. The senior administrative staff does not directly provide client support. Because of the clientele of MIS, there is significant fluctuation from month to month. Managers are billed to clients at a rate of $870 per hour and staff at a rate of $435 per hour. Managers are paid $380 per hour worked (including nonbillable time), and staff are paid $215 per hour. The current plan calls for managers to bill 970 hours in November and 790 hours in December. Staff are expected to bill 6,440 hours in November and 5,140 hours in December. Managers will work a total of 1,460 hours in both months, and staff will work a total of 8,140 hours in November and 7,700 hours in December. Other monthly costs (all fixed) are $758,500 selling, general, and administrative, $158,500 in depreciation, and $267,000 in marketing. Required: Prepare a budgeted income statement for Mansfield Information Systems for November and December (separately). Revenues: Managers Staff Total revenue Expenses Manager pay Staff pay Total compensation Selling, general, and administrative Depreciation Marketing Total expenses Mansfield Information Systems Budgeted Income Statement Income (loss) November S S December 0$ 0$ 0$ 0 $ 0 0 0
Mansfield Information Systems (MIS) is an IT support firm. Managers and staff are billed to clients on an hourly basis. The senior administrative staff does not directly provide client support. Because of the clientele of MIS, there is significant fluctuation from month to month. Managers are billed to clients at a rate of $870 per hour and staff at a rate of $435 per hour. Managers are paid $380 per hour worked (including nonbillable time), and staff are paid $215 per hour. The current plan calls for managers to bill 970 hours in November and 790 hours in December. Staff are expected to bill 6,440 hours in November and 5,140 hours in December. Managers will work a total of 1,460 hours in both months, and staff will work a total of 8,140 hours in November and 7,700 hours in December. Other monthly costs (all fixed) are $758,500 selling, general, and administrative, $158,500 in depreciation, and $267,000 in marketing. Required: Prepare a budgeted income statement for Mansfield Information Systems for November and December (separately). Revenues: Managers Staff Total revenue Expenses Manager pay Staff pay Total compensation Selling, general, and administrative Depreciation Marketing Total expenses Mansfield Information Systems Budgeted Income Statement Income (loss) November S S December 0$ 0$ 0$ 0 $ 0 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Mansfield Information Systems (MIS) is an IT support firm. Managers and staff are billed to clients on an hourly basis. The senior
administrative staff does not directly provide client support. Because of the clientele of MIS, there is significant fluctuation from month
to month.
Managers are billed to clients at a rate of $870 per hour and staff at a rate of $435 per hour. Managers are paid $380 per hour worked
(including nonbillable time), and staff are paid $215 per hour. The current plan calls for managers to bill 970 hours in November and
790 hours in December. Staff are expected to bill 6,440 hours in November and 5,140 hours in December. Managers will work a total of
1,460 hours in both months, and staff will work a total of 8,140 hours in November and 7,700 hours in December.
Other monthly costs (all fixed) are $758,500 selling, general, and administrative, $158,500 in depreciation, and $267,000 in marketing.
Required:
Prepare a budgeted income statement for Mansfield Information Systems for November and December (separately).
Revenues:
Managers
Staff
Total revenue
Expenses
Manager pay
Staff pay
Total compensation
Selling, general, and administrative
Depreciation
Marketing
Total expenses
Mansfield Information Systems
Budgeted Ingame Statement i
Income (loss)
November
$
$
S
S
December
0$
0 $
0
$
0 $
0
0
0
0
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