Accounting
27th Edition
ISBN: 9781337272094
Author: WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher: Cengage Learning,
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Chapter 22, Problem 22.8EX
Professional labor cost budget for a service company
Based on the data in Exercise 22–7 and assuming that the average compensation per hour for staff is $45 and for partners is $140, prepare a professional labor cost budget for each department for Rollins and Cohen, CPAs, for the year ending December 31, 20Y7. Use the following column headings:
| Staff | Partners |
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Professional Fees Earned Budget
Day & Spieth, CPAS, offer three types of services to clients: auditing, tax, and small business accounting. Based on experience and projected growth, the
following billable hours have been estimated for the year ending March 31, 20Y6:
Billable Hours
Audit Department:
Staff
27,300
Partners
4,100
Tax Department:
Staff
21,000
Partners
2,600
Small Business Accounting Department:
Staff
3,500
Partners
500
The average billing rate for staff is $105 per hour, and the average billing rate for partners is $225 per hour.
Prepare a professional fees earned budget for Day & Spieth, CPAS, for the year ending March 31, 20Y6.
DAY & SPIETH, CPAS
Professional Fees Earned Budget
For the Year Ending March 31, 20Y6
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O 11:09
Professional Labor Cost Budget for a Service Company
Lundquist & Fretwell, CPAS, offer three types of services to
clients: auditing, tax, and small business accounting. Based
on experience and projected growth, the following billable
hours have been estimated for the year ending May 31,
20Y8:
Audit Department:
Staff
Partners
Tax Department:
Staff
Partners
Small Business Accounting Department:
Staff
Partners
Billable Hours
Audit Department hours
Tax Department hours
Small Business Accounting Department hours
Total hours
Average compensation per hour
Total professional labor cost
25,000
6,000
Based on the data provided above and assuming that the
average compensation per hour for staff is $40 and for
partners is $175, prepare a professional labor cost budget
for each department for Lundquist & Fretwell, CPAS, for the
year ending May 31, 20Y8.
40,000
8,500
Lundquist & Fretwell, CPAS
Professional Labor Cost Budget
For the Year Ending December 31, 20Y8
Staff
Partners
X $
5,000
500
x $
D
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collected the following data for the next year's budgeted activity for a lead consultant and the supplies clerk.
W
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Consultants' wages
Benefits
Related overhead
Clerk's wages
Benefits
Related overhead
Profit margin per hour
Profit margin on materials
Total estimated consulting hours
Total estimated material costs
O $30.48.
O $52.00.
O $32.00.
O $16.00.
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Chapter 22 Solutions
Accounting
Ch. 22 - Prob. 22.1DQCh. 22 - Briefly describe the type of human behavior...Ch. 22 - What behavioral problems are associated with...Ch. 22 - What behavioral problems are associated with...Ch. 22 - Under what circumstances is a static budget...Ch. 22 - How do computerized budgeting systems aid firms in...Ch. 22 - Why should the production requirements set forth...Ch. 22 - Why should the timing of direct materials...Ch. 22 - a. Discuss the purpose of the cash budget. b. If...Ch. 22 - Prob. 22.10DQ
Ch. 22 - Flexible budgeting At the beginning of the period,...Ch. 22 - Flexible budgeting At the beginning of the period,...Ch. 22 - Production budget Daybook Inc. projected sales of...Ch. 22 - Prob. 22.2BPECh. 22 - Direct materials purchases budget Daybook Inc....Ch. 22 - Direct materials purchases budget Magnolia Candle...Ch. 22 - Direct labor cost budget Daybook Inc. budgeted...Ch. 22 - Direct labor cost budget Magnolia Candle Inc....Ch. 22 - Cost of goods sold budget Prepare a cost of goods...Ch. 22 - Cost of goods sold budget Prepare a cost of goods...Ch. 22 - Cash budget Daybook Inc. collects 30% of its sales...Ch. 22 - Cash budget Magnolia Candle Inc. pays 10% of its...Ch. 22 - Personal budget At the beginning of the school...Ch. 22 - Flexible budget for selling and administrative...Ch. 22 - Static budget versus flexible budget The...Ch. 22 - Flexible budget for Assembly Department Steelcase...Ch. 22 - Production budget Weightless Inc. produces a small...Ch. 22 - Sales and production budgets Sonic Inc....Ch. 22 - Professional fees earned budget for a service...Ch. 22 - Professional labor cost budget for a service...Ch. 22 - Direct materials purchases budget Lorenzo's Frozen...Ch. 22 - Prob. 22.10EXCh. 22 - Direct materials purchases budget Anticipated...Ch. 22 - Direct labor cost budget MatchPoint Racket Company...Ch. 22 - Direct labor budget for a service business...Ch. 22 - Production and direct labor cost budgets Levi...Ch. 22 - Factory overhead cost budget Sweet Tooth Candy...Ch. 22 - Cost of goods sold budget Wilmington Chemical...Ch. 22 - Cost of goods sold budget The controller of...Ch. 22 - Schedule of cash collections of accounts...Ch. 22 - Schedule of cash collections of accounts...Ch. 22 - Schedule of cash payments for a service company...Ch. 22 - Schedule of cash payments for a service company...Ch. 22 - Capital expenditures budget On January 1, 20Y2,...Ch. 22 - Forecast sales volume and sales budget For 20Y6,...Ch. 22 - Sales, production, direct materials purchases, and...Ch. 22 - Budgeted income statement and supporting budgets...Ch. 22 - Cash budget The controller of Sonoma Housewares...Ch. 22 - Budgeted income statement and balance sheet As a...Ch. 22 - Forecast sales volume and sales budget Sentinel...Ch. 22 - Sales, production, direct materials purchases, and...Ch. 22 - Budgeted income statement and supporting budgets...Ch. 22 - Cash budget The controller of Mercury Shoes Inc....Ch. 22 - Budgeted income statement and balance sheet As a...Ch. 22 - Prob. 22.1CPCh. 22 - Communication The city of Milton has an annual...Ch. 22 - Prob. 22.4CPCh. 22 - Static budget for a service company A bank manager...Ch. 22 - Objectives of the master budget Dominos Pizza...
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