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Refer to the AccuTax Incorporated exhibit One of the partners is planning to retire at the end of the year. May Higgins, the sole remaining partner, plans to add a manager at an annual salary of $92,400. She expects the manager to work, on average, 45 hours a week for 45 weeks per year. She plans to change the required staff time for each hour spent to complete a tax return to the following Complex Individual Return 0.07 hour Simple Individual Return Business Return Partner Manager 9.4 hour 0.1 hour 0.5 hour Senior consultant Consultant 0.13 hour 0.40 hour 0.40 hour 0.2 hour 0.8 hour The manager is salaried and earns no overtime pay. Senior consultants are salaried but receive time and a half for any overtime worked. The firm plans to keep all the senior consultants and adjust the number of consultants as needed including employing part- time consultants, who also are paid on an hourly basis. Higgins has also decided to have five supporting staff at $56,500 each. All other operating data remain unchanged. The manager will share 7% of any profit over $440,000 before bonus Required: 1. What are the budgeted total cost for overtime hours worked by senior consultants? 2. How many full-time consultants should be budgeted? 3. Determine the manager's total compensation and total pretax operating income for the firm, assuming that the revenues from preparing tax returns remain unchanged.

Refer to the AccuTax Incorporated exhibit One of the partners is planning to retire at the end of the year. May Higgins, the sole remaining partner, plans to add a manager at an annual salary of $92,400. She expects the manager to work, on average, 45 hours a week for 45 weeks per year. She plans to change the required staff time for each hour spent to complete a tax return to the following Complex Individual Return 0.07 hour Simple Individual Return Business Return Partner Manager 9.4 hour 0.1 hour 0.5 hour Senior consultant Consultant 0.13 hour 0.40 hour 0.40 hour 0.2 hour 0.8 hour The manager is salaried and earns no overtime pay. Senior consultants are salaried but receive time and a half for any overtime worked. The firm plans to keep all the senior consultants and adjust the number of consultants as needed including employing part- time consultants, who also are paid on an hourly basis. Higgins has also decided to have five supporting staff at $56,500 each. All other operating data remain unchanged. The manager will share 7% of any profit over $440,000 before bonus Required: 1. What are the budgeted total cost for overtime hours worked by senior consultants? 2. How many full-time consultants should be budgeted? 3. Determine the manager's total compensation and total pretax operating income for the firm, assuming that the revenues from preparing tax returns remain unchanged.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please help. missing part 3 could you please explain as well

Refer to the AccuTax Incorporated exhibit One of the partners is planning to retire at the end of the year. May Higgins, the sole remaining partner, plans to add a manager at an annual salary of $92,400. She expects the manager to work, on average, 45 hours a week for 45 weeks per year. She plans to change the required staff time for each hour spent to complete a tax return to the following Complex Individual Return. 0.07 hour Simple Individual Return Partner Manager Business Return 0.4 hour 0.1 hour 0.5 hour 0.13 hour 0.40 hour Senior consultant Consultant 0.2 hour 0.5 hour 0.40 hour The manager is salaried and earns no overtime pay, Senior consultants are salaried but receive time and a half for any overtime worked. The firm plans to keep all the senior consultants and adjust the number of consultants as needed including employing part. time consultants, who also are paid on an hourly basis. Higgins has also decided to have five supporting staff at $56,500 each. All other operating data remain unchanged. The manager will share 7% of any profit over $440,000 before bonus. Required: 1. What are the budgeted total cost for overtime hours worked by senior consultants? 2. How many full-time consultants should be budgeted? 3. Determine the manager's total compensation and total pretax operating income for the firm, assuming that the revenues from preparing tax returns remain unchanged.
Transcribed Image Text:Refer to the AccuTax Incorporated exhibit One of the partners is planning to retire at the end of the year. May Higgins, the sole remaining partner, plans to add a manager at an annual salary of $92,400. She expects the manager to work, on average, 45 hours a week for 45 weeks per year. She plans to change the required staff time for each hour spent to complete a tax return to the following Complex Individual Return. 0.07 hour Simple Individual Return Partner Manager Business Return 0.4 hour 0.1 hour 0.5 hour 0.13 hour 0.40 hour Senior consultant Consultant 0.2 hour 0.5 hour 0.40 hour The manager is salaried and earns no overtime pay, Senior consultants are salaried but receive time and a half for any overtime worked. The firm plans to keep all the senior consultants and adjust the number of consultants as needed including employing part. time consultants, who also are paid on an hourly basis. Higgins has also decided to have five supporting staff at $56,500 each. All other operating data remain unchanged. The manager will share 7% of any profit over $440,000 before bonus. Required: 1. What are the budgeted total cost for overtime hours worked by senior consultants? 2. How many full-time consultants should be budgeted? 3. Determine the manager's total compensation and total pretax operating income for the firm, assuming that the revenues from preparing tax returns remain unchanged.
Revenue Payroll expenses: Partner Manager Senior consultants-base pay Senior consultants-pay for overtime hours Consultants-Full-time Consultants-Part-time Support staff General and administrative expenses Operating income before bonus to manager Less: Manager's bonus Operating income before taxes Total compensation for the manager: Salary Bonus T-111 DONUS Acculax Inc. Budgeted Operating Income For the Year ended December 31, 2022 $ Total 250,000 720,000 0 960,000 10,000 $ < Required 2 $ 3,840,000 $ 1,940,000 $ 1,900,000 $ 1,900,000 0 Required
Transcribed Image Text:Revenue Payroll expenses: Partner Manager Senior consultants-base pay Senior consultants-pay for overtime hours Consultants-Full-time Consultants-Part-time Support staff General and administrative expenses Operating income before bonus to manager Less: Manager's bonus Operating income before taxes Total compensation for the manager: Salary Bonus T-111 DONUS Acculax Inc. Budgeted Operating Income For the Year ended December 31, 2022 $ Total 250,000 720,000 0 960,000 10,000 $ < Required 2 $ 3,840,000 $ 1,940,000 $ 1,900,000 $ 1,900,000 0 Required
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