ACC 561 help A Guide to career/uophelp.com ACC 561 help A Guide to career/uophelp.com | Page 57

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. Bargain
Electronics will incur special shipping costs of $4 per unit. Assuming
that Bargain Electronics has excess operating capacity, indicate the net
income (loss) Bargain Electronics would realize by accepting the special
order
Brief Exercise 20-4
Manson Industries incurs unit costs of $7 ($4 variable and $3 fixed) in
making an assembly part for its finished product. A supplier offers to