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, 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The Empire Hotel is a full-service hotel in a large city. Empire is organized into three departments that are treated as investment centers. Budget information for the coming year for these three departments is shown as follows. The managers of each of the departments are evaluated and bonuses are awarded each year based on ROI. Average investment Sales revenue Operating expenses Operating earnings Empire Hotel Hotel Rooms $ 10,000,000 $ 11,250,000 8,685,000 $ 2,565,000 Restaurants $ 6,250,000 $ 2,500,000 1,582,500 $ 917,500 Health Spa $ 1,250,000 $ 800,000 616,000 $ 184,000 Required a. Compute the ROI for each department. Use the DuPont method to analyze the return on sales and capital turnover. Assume the Health Spa is considering installing new exercise equipment. Upon investigating, the manager of the division finds that the equipment would cost $77,000 and that operating earnings would increase by $13,860 per year as a result of the new equipment. b-1. What is the ROI of the…
Planning Specialists Investors is opening an office in Atlanta, Georgia. Fixed monthly expenses are office rent ($2,500), depreciation on office furniture ($260), utilities ($250), special telephone lines ($600), a subscription to an online brokerage service ($640), and the salary of a financial planner ($1,750). Variable expenses include payments to the financial planner (10% of revenue), advertising (5% of revenue), supplies and postage (2% of revenue), and usage fees for the telephone lines and computerized brokerage service (8% of revenue). Read the requirements. Requirement 1. Compute the investment firm's breakeven revenue in dollars. If the average trade leads to $500 in revenue for Planning Specialists, how many trades must it make to breakeven? First identify the formula to calculate the breakeven point in dollars. (Contribution margin per unit ▼ + Requirements 1. Compute the investment firm's breakeven revenue in dollars. If the average trade leads to $500 in revenue for…
Walker & Elliott LLC (W&E) is budgeting for next year. Much of the work that W&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 (b) 5 7 8 20 Target Billable Hours per Person 1,100 Operating income 1,100 1,900 1,900 Billable Rate/Hour $160 120 95 The administrative staff costs the firm, on average, $30 per billable hour. Additionally, miscellaneous supplies usually run $5 per billable hour. 70 Assume W&E's fixed costs are budgeted at $2.9 million for next year. How much will the firm generate in operating income if all…
The Customer Service Department of Door Industries Inc. asked the Publications Department to prepare a brochure for its training program. The Publications Department delivered the brochures and charged the Customer Service Department a rate that was 25% higher than could be obtained from an outside printing company. The policy of the company required the Customer Service Department to use the internal publications group for brochures. The Publications Department claimed that it had a drop in demand for its services during the fiscal year, so it had to charge higher prices in order to recover its payroll and fixed costs. Recommend how the cost of the brochure should be transferred to the Customer Service Department.
8
Harbor Island Investments (HII) is a discount brokerage firm offering clients investment advice, trading services, and a variety of mutual funds for investment. HII has collected the following information for November: Employee compensation Employee training programs Fees paid to execute trades Lease and facility costs Marketing Revenues (Advisory fees) Revenues (Brokerage commissions) Sales commissions to brokers Supervisors' salaries Required: Prepare an income statement for November for HII. Sales revenue Total revenues Cost of services sold Total costs of services $884,000 471,500 2,204,000 196,500 103,000 HARBOR ISLAND INVESTMENTS Income Statement For the Month Ending November 30 Marketing and administrative costs 1,654,000 3,304,000 279,000 334,000
as
Burdeno Appliances has two divisions, Sales and Financing. Sales is responsible for selling Burdeno's inventory and maintaining inventory for future sale. Financing Division takes loan applications, packages loans into pools, and sells them in the financial markets. It also services the loans. Both divisions meet the requirements for segment disclosures under accounting rules. Sales Division had $8 million in sales last year. Costs, other than those charged by Financing Division, totaled $6 million. Financing Division earned revenues of $2.5 million from servicing loans and incurred outside costs of $3 million. In addition, Financing charged Operations $900,000 for loan-related fees. Sales' manager complained to corporate that Financing was charging 150 percent of the commercial rate for loan-related fees and that Sales would be better off sending its buyers to an outside lender Financing's manager replied that although commercial rates could be lower, servicing these loans is more…
Global HR is a Human Resources Consulting firm that employs 25 consultants. Of the 25 consultants, 5 are senior consultants, who are also partners in the firm. The average salary per year for senior consultants is Rs. 40 lakhs per consultant and other draw annual salary of Rs. 18 lakhs. Each consultant is expected to log 150 billable days. The estimated corporate overhead for a year is Rs. 200 lakhs. A large retail company wants to hire the service of Global HR for performance assessment of the senior managers numbering 50 managers. Global HR estimates the job would require 2 senior consultants and 6 other consultants for a period of 50 days. The assignment also involves travel. The estimated number of days of travel is 100 consultant days. The cost of airfare, local conveyance, boarding and lodging per consultant day is Rs. 30000. Normally, Global HR adds a mark-up of 60% while quoting the fee. How much Global HR should quote for this performance assessment consulting assignment?
Provide FOUR objectives of the internal control that should be exercised over a wages system.
Professional 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 50,000 Partners 10,000 Tax Department: Staff 75,000 Partners 16,000 Small Business Accounting Department: Staff 20,000 Partners 4,000 Assume that the average compensation per hour for staff is $36 and for partners is $300. 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…
Merton Electronics operates two retail outlets in Port Wren, one downtown and the other in Docklands. The stores share the use of a corporate staff responsible for functions such as personnel, IT, marketing, purchasing, and so on. The cost of the corporate activities for last year was $162,000. The following are the operating results for the two stores for the year: Downtown Docklands Sales revenue $ 720,000 $ 900,000 Number of employees 45 30 Required: Allocate the cost of the corporate activities to the two stores based on: Number of employees. store revenue.