Answered step by step
Verified Expert Solution
Question
1 Approved Answer
b) compute the cost of Cohen's plan of using overtime and Forrester first find the total costs for regular time, overtime and Forrester ( enter
b) compute the cost of Cohen's plan of using overtime and Forrester
first find the total costs for regular time, overtime and Forrester ( enter your responses as the whole number)
total regualr time cost= $ ...
total "Overtime" cost= $ ...
total Forrester cost= $ ...
Determine the total cost by adding these costs
total cost= $ ...
please do all months and write it down. :)
Forrester and Cohen is a small accounting firm, managed by Joseph Cohen since the retirement in December of his partner Brad Forrester. Cohen and his 3 CPAs together bill 620 hours per month. When Cohen or another accountant bills more than 155 hours per month, he or she gets an additional "overtime" pay of $63.20 for each of the extra hours: this is above and beyond the $4,900 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 255 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. May June Estimate of Billable Hours 610 510 1,010 1,230 640 590 Cohen has an agreement with Forrester, his former partner, to help out during the busy tax season, up to 255 hours in any given month if needed, for hourly fee of $130. 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. 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 "Overtime" cost Forrester hours Forrester cost Jan. 610Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started