One of the LGOs deals with the administration of a local property taxdepartment wants to introduce activity based budgeting. One of the acinvolved in is dealing with enquiries from taxpayers. The driver foenquiries, which is expected to be 28,800 per year. Each enquiry take:on average. Staff costs for dealing with such enquiries is $20,000 perstaff works 8 hours per day for 240 days a year. A team supervisor isof $35,000 per year. Each member of staff and the supervisor requirewhich is leased at a cost of $200 per terminal.What is the budgeted cost of one enquiry?ABCD$10.41$11.74$46.96$84.65

Step 1: Given information:Expected number of enquiries per year: 28,800Average time to deal with…

Answered: One of the LGOs deals with the…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 17E: Postman Company is considering two independent projects. One project involves a new product line,...

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Finance
The director of public works needs to distribute the indirect cost allocation of $1.2 million to the three branches around the city. She will use the information from last year to determine the rates for this year. a. Determine this year’s indirect cost rates for each branch. b. Use the rates from last year and records for this year to distribute the allocation for this year. How much of the $1.2 million is actually distributed?
South Hampton University is preparing its budget for the upcoming academic year. This is a specialised private university that charges fees for all degree courses. Currently, 30,000 students are enrolled on campus. However, the university is forecasting a 5 per cent growth in student numbers in the coming year, despite an increase in fees to $3,000 per subject. The following additional information has been gathered from an examination of university records and conversations with university managers: South Hampton is planning to award scholarships to 200 students, which will cover their fees. The average class has 80 students, and the typical student takes 4 subjects per semester. South Hampton operates 2 semesters per year. The average academic staff salary is $120,000 per annum including on-costs. South Hampton’s academic staff are evaluated on the basis of teaching, research, administration and professional/community service. Each of the academic staff teaches the equivalent…
South Hampton University is preparing its budget for the upcoming academic year. This is a specialised private university that charges fees for all degree courses. Currently, 30,000 students are enrolled on campus. However, the university is forecasting a 5 per cent growth in student numbers in the coming year, despite an increase in fees to $3,000 per subject. The following additional information has been gathered from an examination of university records and conversations with university managers: South Hampton is planning to award scholarships to 200 students, which will cover their fees. The average class has 80 students, and the typical student takes 4 subjects per semester. South Hampton operates 2 semesters per year. The average academic staff salary is $120,000 per annum including on-costs. South Hampton’s academic staff are evaluated on the basis of teaching, research, administration and professional/community service. Each of the academic staff teaches the equivalent of…
South Hampton University is preparing its budget for the upcoming academic year. This is a specialised private university that charges fees for all degree courses. Currently, 30,000 students are enrolled on campus. However, the university is forecasting a 5 per cent growth in student numbers in the coming year, despite an increase in fees to $3,000 per subject. The following additional information has been gathered from an examination of university records and conversations with university managers:South Hampton is planning to award scholarships to 200 students, which will cover their fees.  The average class has 80 students, and the typical student takes 4 subjects per semester. South Hampton operates 2 semesters per year.  The average academic staff salary is $120,000 per annum including on-costs.  South Hampton’s academic staff are evaluated on the basis of teaching, research, administration and professional/community service. Each of the academic staff teaches the equivalent of…
South Hampton University is preparing its budget for the upcoming academic year. This is a specialised private university that charges fees for all degree courses. Currently, 30,000 students are enrolled on campus. However, the university is forecasting a 5 per cent growth in student numbers in the comingyear, despite an increase in fees to $2,000 per subject. The following additional information has beengathered from an examination of university records and conversations with university managers:South Hampton is planning to award scholarships to 200 students, which will cover their fees. The average class has 80 students, and the typical student takes 4 subjects per semester. SouthHampton operates 2 semesters per year.The average academic staff salary is $220,000 per annum including on-costs. South Hampton’s academic staff are evaluated on the basis of teaching, research, administrationand professional/community service. Each of the academic staff teaches the equivalent of…
Sharon Lee operates a popular summer camp for elementary school children. Projections for the current year are as follows: Sales revenue $8,340,000 Operating income Average assets $739,250 $4,208,000 The camp's weighted-average cost of capital is 10%, and Sharon requires that all new investments generate a return on investment of at least 15%. The camp's current tax rate is 30%. At last week's advisory board meeting, Sharon told the board that she had up to $70,000 to invest in new facilities at the camp and asked them to recommend some projects. Today the board's president presented Sharon with the following list of three potential investments to improve the camp facilities. Swimming Playground $ 2,470 Pool Gym $3,910 Incremental operating income $5,760 Average total assets 19,000 32,000 23,000 (a) Your answer is partially correct. Calculate the return on investment, residual income, and economic value added for each of the three projects. (Enter negative amounts using either a…
Provided that you have received start-up funding of $250 000.00 for any business of your choice, prepare a forecast where costs associated with required business resources are outline and create a budget for the first two months of the business. Calculate the break-even point.
Susan Wilson operates a popular summer camp for elementary school children. Projections for the current year are as follows: Sales revenue $7,620,000 Operating income $670,250 Average assets $3,824,000 The camp's weighted-average cost of capital is 11%, and Susan requires that all new investments generate a return on investment of at least 15%. The camp's current tax rate is 30% At last week's advisory board meeting, Susan told the board that she had up to $70,000 to invest in new facilities at the camp and asked them to recommend some projects. Today the board's president presented Susan with the following list of three potential investments to improve the camp facilities. Playground Swimming Pool Gym Incremental operating income $1,690 $6,930 $3,910 Average total assets. 13,000 38,500 23,000
Garcia & Elliott LLC (G&E) is budgeting for next year. Much of the work that G&E does relates to repeat business (quarterly and annual tax filings and annual audits), but the partners also work hard to gain new business. The firm employs 40 professional accountants-all salaried-and four administrative staff members-all hourly. The following chart shows the number of accountants by role, along with targeted billable hours and billable rates for each level. Target Billable Hours per Person are annual amounts, as the TFC are given annually. Partner Manager Senior Staff Number of Accountants 5 7 8 20 Target Billable Hours per Person 1,100 Operating income $ 1,100 1,800 1,800 Billable Rate/Hour $145 135 100 80 The administrative staff costs the firm, on average, $30 per billable hour. Additionally, miscellaneous supplies usually run $5 per billable hour. Assume G&E's fixed costs are budgeted at $2.6 million for next year. How much will the firm generate in operating income if all…

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