Financial & Managerial Accounting
13th Edition
ISBN: 9781285866307
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 21, Problem 21.7EX
To determine
Budgeting is a process to prepare the financial statement by the manager to estimate the organization’s future actions. It is also helpful to satisfy the everyday activities.
To Prepare: The professional fees earned budget of Incorporation R.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
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
28,100
Partners
4,200
Tax Department:
Staff
21,100
Partners
2,600
Small Business Accounting Department:
Staff
3,900
Partners
500
The average billing rate for staff is $110 per hour, and the average billing rate for partners is $230 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
Billable Hours
Hourly Rate
Total Revenue
Audit Department:
Staff
$
$
Partners
Total
$
Tax Department:
Staff
$
$
Partners
Total
$…
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
36,000
Partners
5,400
Tax Department:
Staff
27,700
Partners
3,500
Small Business Accounting Department:
Staff
4,700
Partners
700
The average billing rate for staff is $145 per hour, and the average billing rate for partners is $265 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
Billable Hours
Hourly Rate
Total Revenue
Audit Department:
Staff
fill in the blank 1
$fill in the blank 2
$fill in the blank 3
Partners
fill in the blank 4
fill in the…
Professional Fees Earned 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
Audit Department:
Staff
Partners
The average billing rate for staff is $140 per hour, and the
average billing rate for partners is $450 per hour.
Prepare a professional fees earned budget for Lundquist &
Fretwell, CPAS, for the year ending May 31, 20Y8.
Total
Tax Department:
Staff
Partners
Total
Small Business Accounting Department:
Staff
Partners
Billable Hours
Total
25,000
6,000
40,000
8,500
Lundquist & Fretwell, CPAs
Professional Fees Earned Budget
For the Year Ending May 31, 20Y8
Total professional fees earned
5,000
500
Billable Hours Hourly Rate Total Revenue
3
Chapter 21 Solutions
Financial & Managerial Accounting
Ch. 21 - Prob. 1DQCh. 21 - Briefly describe the type of human behavior...Ch. 21 - What behavioral problems are associated with...Ch. 21 - What behavioral problems are associated with...Ch. 21 - Under what circumstances would a static budget be...Ch. 21 - How do computerized budgeting systems aid firms in...Ch. 21 - Why should the production requirements Set forth...Ch. 21 - Prob. 8DQCh. 21 - A. Discuss the purpose of the cash budget. B. If...Ch. 21 - Give an example of how the capital expenditures...
Ch. 21 - Flexible budgeting At the beginning of the period,...Ch. 21 - Prob. 21.1BPECh. 21 - Prob. 21.2APECh. 21 - Prob. 21.2BPECh. 21 - Direct materials purchases budget My Life...Ch. 21 - Prob. 21.3BPECh. 21 - Direct labor cost budget MyLife Chronicles Inc....Ch. 21 - Prob. 21.4BPECh. 21 - Prob. 21.5APECh. 21 - Prob. 21.5BPECh. 21 - Prob. 21.6APECh. 21 - Prob. 21.6BPECh. 21 - Personal budget At the beginning of the 2016...Ch. 21 - Flexible budget for selling and administrative...Ch. 21 - Static budget versus flexible budget The...Ch. 21 - Prob. 21.4EXCh. 21 - Prob. 21.5EXCh. 21 - Prob. 21.6EXCh. 21 - Prob. 21.7EXCh. 21 - Prob. 21.8EXCh. 21 - Direct materials purchases budget Romano's Frozen...Ch. 21 - Prob. 21.10EXCh. 21 - Prob. 21.11EXCh. 21 - Direct labor cost budget Ace Racket Company...Ch. 21 - Prob. 21.13EXCh. 21 - Production and direct labor cost budgets Levi...Ch. 21 - Prob. 21.15EXCh. 21 - Cost of goods sold budget Delaware Chemical...Ch. 21 - Cost of goods sold budget The controller of...Ch. 21 - Schedule of cash collections of accounts...Ch. 21 - Schedule of cash collections of accounts...Ch. 21 - Schedule of cash payments for a service company...Ch. 21 - Schedule of cash payments for a service company...Ch. 21 - Capital expenditures budget On January 1, 2016,...Ch. 21 - Forecast sales volume and sales budget For 2016,...Ch. 21 - Sales, production, direct materials purchases, and...Ch. 21 - Budgeted income statement and supporting budgets...Ch. 21 - Cash budget The controller of Sonoma Housewares...Ch. 21 - Budgeted income statement and balance sheet As a...Ch. 21 - Prob. 21.1BPRCh. 21 - Sales, production, direct materials purchases, and...Ch. 21 - Budgeted income statement and supporting budgets...Ch. 21 - Cash budget The controller of Mercury Shoes Inc....Ch. 21 - Prob. 21.5BPRCh. 21 - Prob. 21.1CPCh. 21 - Prob. 21.2CPCh. 21 - Static budget for a service company A bank manager...Ch. 21 - Objectives of the master budget Dominos Pizza LLC....Ch. 21 - Integrity and evaluating budgeting systems The...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Professional labor cost budget for a service company Based on the data in Exercise 7 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 forLundquist Fretwell, CPAs, for the year ending May 31, 20Y8. Use the following column headings:arrow_forwardA company uses charging rates to allocate service department costs to the using departments. The accountant compiled the following information on one of the service departments: If Department K plans to use 1,350 hours of the service departments service in the coming year, how much of the service departments cost is allocated to Department K? a. 3,375 b. 27,300 c. 26,325 d. 23,950arrow_forwardCoral Seas Jewelry Company makes and sells costume jewelry. For the coming year, Coral Seas expects sales of 15.9 million and cost of goods sold of 8.75 million. Advertising is a key part of Coral Seas business strategy, and total marketing expense for the year is budgeted at 2.8 million. Total administrative expenses are expected to be 675,000. Coral Seas has no interest expense. Income taxes are paid at the rate of 40 percent of operating income. Required: 1. Construct a budgeted income statement for Coral Seas Jewelry Company for the coming year. 2. What if Coral Seas had interest payments of 500,000 during the year? What effect would that have on operating income? On income before taxes? On net income?arrow_forward
- Friendly Bank is attempting to determine the cost behavior of its small business lending operations. One of the major activities is the application activity. Two possible activity drivers have been mentioned: application hours (number of hours to complete the application) and number of applications. The bank controller has accumulated the following data for the setup activity: Required: 1. Estimate a regression equation with application hours as the activity driver and the only independent variable. If the bank forecasts 2,600 application hours for the next month, what will be the budgeted application cost? 2. Estimate a regression equation with number of applications as the activity driver and the only independent variable. If the bank forecasts 80 applications for the next month, what will be the budgeted application cost? 3. Which of the two regression equations do you think does a better job of predicting application costs? Explain. 4. Run a multiple regression to determine the cost equation using both activity drivers. What are the budgeted application costs for 2,600 application hours and 80 applications?arrow_forwardProfessional Fees Earned Budget for a Service Company Rollins and Cohen, 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 December 31, 20Y7: Billable Hours Audit Department: Staff 45,000 Partners 6,800 Tax Department: Staff 34,200 Partners 4,300 Small Business Accounting Department: Staff 6,300 Partners 900 The average billing rate for staff is $120 per hour, and the average billing rate for partners is $240 per hour. Prepare a professional fees earned budget for Rollins and Cohen, CPAS, for the year ending December 31, 20Y7. ROLLINS AND COHEN, CPAS Professional Fees Earned Budget For the Year Ending December 31, 20Y7 Billable Hourly Total Hours Rate Revenue Audit Department: Staff Partners Total $4 Tax Department: Staff Partners Total Small Business Accounting Department: Staff Partners Total $ Total professional fees earned $arrow_forwardProfessional Fees Earned Budget for a Service Company Rollins and Cohen, 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 month ending January 31, 20Y7: Billable Hours Audit Department: Staff 39,800 Partners 6,000 ) Tax Department: Staff 30,200 Partners 3,800 Small Business Accounting Department: Staff 5,200 Partners 700 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 Rollins and Cohen, CPAS, for the month ending January 31, 20Y7. ROLLINS AND COHEN, CPAS Professional Fees Earned Budget For the Month Ending January 31, 20Y7 Billable Hourly Rate Total Revenue Hours Audit Department: Staff Partners Total Tax Department: Staff Partners Total Small Business Accounting Department: Staff Partners Total Total professional fees earnedarrow_forward
- Professional Fees Earned Budget for a Service Company Rollins and Cohen, 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 month ending January 31, 20Y7: Billable Hours Audit Department: Staff Partners Tax Department: 43,700 6,600 Staff 33,200 Partners 4,200 Small Business Accounting Department: Staff 5,700 800 Partners 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 Rollins and Cohen, CPAs, for the month ending January 31, 2017. ROLLINS AND COHEN, CPAS Professional Fees Earned Budget For the Month Ending January 31, 20Y7 Audit Department: Staff Partners Total Billable Hourly Total Hours Rate Revenue Tax Department: Staff Partners Total Small Business Accounting Department: Staff Partners Total Total professional fees earned QO QO QOQ…arrow_forwardProfessional Fees Earned 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: Billable Hours Audit Department: Staff 25,000 Partners 6,000 Tax Department: Staff 40,000 Partners 8,500 Small Business Accounting Department: Staff 5,000 Partners 500 The average billing rate for staff is $140 per hour, and the average billing rate for partners is $450 per hour. Prepare a professional fees earned budget for Lundquist & Fretwell, CPAs, for the year ending May 31, 20Y8. Lundquist & Fretwell, CPAs Professional Fees Earned Budget For the Year Ending May 31, 20Y8 Billable Hours Hourly Rate Total Revenue Audit Department: Staff Partners Total Tax Department:…arrow_forwardProfessional Fees Earned Budget Sadie & Chipper, 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 25,000 Partners 5,000 Tax Department: Staff 37,500 Partners 8,000 Small Business Accounting Department: Staff 10,000 Partners 2,000 The average billing rate for staff is $180 per hour, and the average billing rate for partners is $400 per hour. Prepare a professional fees earned budget for Sadie & Chipper, CPAS, for the year ending March 31, 20Y6. SADIE & CHIPPER, CPAS Professional Fees Earned Budget For the Year Ending March 31, 20Y6 Billable Hours Hourly Rate Total Revenue Audit Department:arrow_forward
- 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 $arrow_forwardProfessional Labor Cost 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 28,200 Partners 4,200 Tax Department: Staff 20,600 Partners 2,600 Small Business Accounting Department: Staff 3,400 Partners 500 Assume that the average compensation per hour for staff is $65 and for partners is $160. Prepare a professional labor cost budget for Day & Spieth, CPAs, for the year ending March 31, 20Y6. Enter all amounts as positive numbers. DAY & SPIETH, CPAs Professional Labor Cost Budget For the Year Ending March 31, 20Y6 Staff Partners Audit Department Hours fill in the blank 1 fill in the blank 2 Tax Department Hours fill in the blank 3 fill in the blank 4 Small Business Accounting…arrow_forwardProfessional Labor Cost Budget for a Service Company Rollins and Cohen, 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 December 31, 20Y7: Billable Hours Audit Department: Staff 37,500 Partners 5,600 Tax Department: Staff 27,400 Partners 3,400 Small Business Accounting Department: Staff 4,900 Partners 700 Based on the data provided above 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. Rollins and Cohen, CPAS Professional Labor Cost Budget For the Year Ending December 31, 20Y7 Staff Partners Audit department hours Tax department hours Small business accounting department hours Total hours Average compensation per hour X $ Total professional labor cost $arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Responsibility Accounting| Responsibility Centers and Segments| US CMA Part 1| US CMA course; Master Budget and Responsibility Accounting-Intro to Managerial Accounting- Su. 2013-Prof. Gershberg; Author: Mera Skill; Rutgers Accounting Web;https://www.youtube.com/watch?v=SYQ4u1BP24g;License: Standard YouTube License, CC-BY