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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 CPAs together bill hours per month. When Cohen or another accountant bills more than hours per month, he or she gets an additional "overtime" pay of $ for each of the extra hours: this is above and beyond the $ salary each draws during the month.Cohen draws the same base pay as his employees. Cohen strongly discourages any CPA from workingbilling more than hours in any given month. The demand for billable hours for the firm over the next months is estimated below:
Month
Estimate of Billable Hours
Jan.
Feb.
Mar.
Apr.
May
June
Cohen has an agreement with Forrester, his former partner, to help out during the busy tax season, up to hours in any given month if needed, for an hourly fee of $ 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
a Develop an aggregate plan for themonth 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 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.
$
$
$
Part
Feb.
$
$
$
Part
Mar.
$
$
$
Part
Apr.
$
$
$
Part
May
$
$
$
Part
June
$
$
$
Part
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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