acc 561 week 6 weily plus assignment 498313

Exercise 20-3

Garza and Neely, CPAs, are preparing their service revenue (sales) budget for the coming year (2012). The practice is divided into three departments: auditing, tax, and consulting. Billable hours for each department, by quarter, are provided below.

Average hourly billing rates are: auditing $81, tax $94, and consulting $102.

Prepare the service revenue (sales) budget for 2012 by listing the departments and showing for each quarter and the year in total, billable hours, billable rate, and total revenue.

Standard cost

$ 22.89

Reject
Order

Accept
Order

Net Income
Increase
(Decrease)

The special order should beaccepted.

Brief Exercise 23-4

Vintech Manufacturing incurs unit costs of $7 ($5 variable and $2 fixed) in making a subassembly part for its finished product. A supplier offers to make 15,500 of the part at $5.90 per unit. If the offer is accepted, Vintech will save all variable costs but no fixed costs.

Prepare an analysis showing the total cost saving, if any, Vintech will realize by buying the part. (If an amount reduces the net income for Increase (Decrease) column then enter with a negative sign preceding the number e.g. -15,000 or parenthesis, e.g. (15,000). Enter all other amounts in all other columns as positive and subtract where necessary.)

Brief Exercise 23-6

Ridley Company has a factory machine with a book value of $80,300 and a remaining useful life of 5 years. A new machine is available at a cost of $192,400. This machine will have a 5-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $552,400 to $364,800.

Prepare an analysis showing whether the old machine should be retained or replaced. (If an amount reduces the net income for Increase (Decrease) column then enter with a negative sign preceding the number e.g. -15,000 or parenthesis, e.g. (15,000). Enter all other amounts in all other columns as positive and subtract where necessary.)