Homework Help is Here – Start Your Trial Now!
Business
Operations Management
Forrester and Cohen is a small accounting firm managed by Joseph Cohen since the retirement in December of his partner, Brenda Forrester. Cohen and his 3 CPAs together bill 640 hours per month. When Cohen or another accountant bills more than 160 hours per month, he or she gets an additional "overtime" pay of $62.50 for each of the extra hours. This is above and beyond the $5,000 salary each draws during the month. (Cohen draws the same base pay as his employees.) Cohen strongly discourages any CPA from working (billing) more than 250 hours in any given month. The demand for billable hours for the firm over the next 6 months is estimated below. Month Jan. Feb. Estimate of Billable Hours 600 490

Forrester and Cohen is a small accounting firm managed by Joseph Cohen since the retirement in December of his partner, Brenda Forrester. Cohen and his 3 CPAs together bill 640 hours per month. When Cohen or another accountant bills more than 160 hours per month, he or she gets an additional "overtime" pay of $62.50 for each of the extra hours. This is above and beyond the $5,000 salary each draws during the month. (Cohen draws the same base pay as his employees.) Cohen strongly discourages any CPA from working (billing) more than 250 hours in any given month. The demand for billable hours for the firm over the next 6 months is estimated below. Month Jan. Feb. Estimate of Billable Hours 600 490

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
See similar textbooks
icon
Related questions
Question
Forrester and Cohen is a small accounting firm managed by Joseph Cohen since the retirement in December of his partner, Brenda Forrester. Cohen and his 3 CPAs together bill 640 hours per month. When Cohen or another accountant bills more than 160 hours per month, he or she gets an additional "overtime" pay of $62.50 for each of the extra hours. This is above and beyond the $5,000 salary each draws during the month. (Cohen draws the same base pay as his employees.) Cohen strongly discourages any CPA from working (billing) more than 250 hours in any given month. The demand for billable hours for the firm over the next 6 months is estimated below. Month Jan. Feb. Mar Apr. Estimate of Billable Hours 600 490 1,010 1,220 660 570 O May June Cohen has an agreement with Forrester, his former partner, to help out during the busy tax season, up to 250 hours in any given month if needed, for an hourly fee of $120. Cohen will not even consider laying off one of his colleagues in the case of a slow economy. He could, however, hire another CPA at the same salary as business dictates. a) Develop an aggregate plan for the 6-month period. (Enter your responses as whole numbers). Use regular time, then overtime, then Forrester, and then hire additional CPAs if needed. O O Note: For the CPA column, only include Cohen, his 3 CPAs, and any new CPAs he may hire in your total. DO NOT include Forrester Month Estimate of Billable Hours CPAs Reg. time billable hours Reg. time cost "Overtime" hours Jan. 600 $ "Overtime" cost $ Forrester hours Forrester cost $ Feb 490 $ $ $ Mar. 1,010 $ $ $ Apr. 1,220 $ May 660 $ June 570 $ b) Compute the cost of Cohen's plan of using overtime and Forrester. The cost of Cohen's plan is $ (Enter your response as a whole number.) c) Should the firm remain as is with a total of 4 CPAs? OA. The firm should remain as it is. OB. The firm should not remain as it is. OC. One would have to carefully examine the other 6 months to see if hiring is merited.
Transcribed Image Text:Forrester and Cohen is a small accounting firm managed by Joseph Cohen since the retirement in December of his partner, Brenda Forrester. Cohen and his 3 CPAs together bill 640 hours per month. When Cohen or another accountant bills more than 160 hours per month, he or she gets an additional "overtime" pay of $62.50 for each of the extra hours. This is above and beyond the $5,000 salary each draws during the month. (Cohen draws the same base pay as his employees.) Cohen strongly discourages any CPA from working (billing) more than 250 hours in any given month. The demand for billable hours for the firm over the next 6 months is estimated below. Month Jan. Feb. Mar Apr. Estimate of Billable Hours 600 490 1,010 1,220 660 570 O May June Cohen has an agreement with Forrester, his former partner, to help out during the busy tax season, up to 250 hours in any given month if needed, for an hourly fee of $120. Cohen will not even consider laying off one of his colleagues in the case of a slow economy. He could, however, hire another CPA at the same salary as business dictates. a) Develop an aggregate plan for the 6-month period. (Enter your responses as whole numbers). Use regular time, then overtime, then Forrester, and then hire additional CPAs if needed. O O Note: For the CPA column, only include Cohen, his 3 CPAs, and any new CPAs he may hire in your total. DO NOT include Forrester Month Estimate of Billable Hours CPAs Reg. time billable hours Reg. time cost "Overtime" hours Jan. 600 $ "Overtime" cost $ Forrester hours Forrester cost $ Feb 490 $ $ $ Mar. 1,010 $ $ $ Apr. 1,220 $ May 660 $ June 570 $ b) Compute the cost of Cohen's plan of using overtime and Forrester. The cost of Cohen's plan is $ (Enter your response as a whole number.) c) Should the firm remain as is with a total of 4 CPAs? OA. The firm should remain as it is. OB. The firm should not remain as it is. OC. One would have to carefully examine the other 6 months to see if hiring is merited.
Expert Solution
steps

Step by step

Solved in 3 steps with 6 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS