ACC 561 Experience Tradition/uophelp.com ACC 561 Experience Tradition/uophelp.com | Page 42

       Brief Exercise 20-4 Brief Exercise 20-8 Exercises: 20-3 Exercises: 22-1 Brief Exercise 23-3 Brief Exercise 23-4 Brief Exercise 23-6 Exercise 21-3 Thome and Crede, CPAs, are preparing their service revenue (sales) budget for the coming year (2017). 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 Prepare the service revenue (sales) budget for 2017 by listing the departments and showing for each quarter and the year in total, billable hours, billable rate, and total revenue. Exercise 23-1 Parsons Company is planning to produce 1,100 units of product in 2017. Each unit requires 2.60 pounds of materials at $4.80 per pound and a half-hour of labor at $14.00 per hour. The overhead rate is 90% of direct labor. a. Compute the budgeted amounts for 2017 for direct materials to be used, direct labor, and applied overhead. b. Compute the standard cost of one unit of product. Brief Exercise 20-3 At Bargain Electronics, it costs $32 per unit ($20 variable and $12 fixed) to make an MP3 player at full capacity that normally sells for $53. A foreign wholesaler offers to buy 4,740 units at $26 each.