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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

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 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 $63.80 for each of the extra hours: this is above and beyond the $5,100 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
Estimate of Billable Hours
Jan.
600
Feb.
490
Mar.
1,010
Apr.
1,230
May
650
June
570
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 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.
Part 2
a) Develop an aggregate plan for the6-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 3CPAs, 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.
600
44
640640
$20,40020,400
00
$00
00
$00
Part 3
Feb.
490
44
640640
$20,40020,400
00
$00
00
$00
Part 4
Mar.
1,010
44
640640
$20,40020,400
370370
$23,60623,606
00
$00
Part 5
Apr.
1,230
44
640640
$2040020400
380380
$24,24424,244
210210
$25,20025,200
Part 6
May
650
44
640640
$2040020400
1010
$638638
00
$00
Part 7
June
570
44
640640
$2040020400
00
$00
00
$00
Part 8
b) Compute the cost of Cohen's plan of using overtime and Forrester.
The cost of Cohen's plan is $enter your response here (enter your response as a whole number).

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