Hello,

I need this project done by April 15, 2017, this upcoming Saturday morning. Please help!

Clark, Long, Winters and Smith. Budgeted Income Statement For the year ending 2016 Revenues Fees from clients Less expenses Partner's compensation Paralegal compensation Office staff expenses Other office expenses Library and research support Travel expenses Telephone Photocopying Rent Heat Taxes Insurance Accounting Total expenses Operating profit $10,000,000.00 $4,000,000.00 $800,000.00 $120,000.00 $72,000.00 $90,000.00 $100,000.00 $20,000.00 $10,000.00 $24,000.00 $6,000.00 $18,000.00 $15,000.00 $5,000.00 $5,280,000.00 $4,720,000.00 COSTS ASSIGNED TO COST POOLS COST Professional compensation Paralegal compensation Travel Library and research support e Telephone Office salaries Other office expenses telephone Photocopying Office salaries Other office expenses Photocopying expenses General Overhead Rent Heat Taxes Insurance Accounting Notes: Office salaries are allocated 50% to telephone and 50% to photocopying Other office expenses are allocated 40% to telephone and 60% to photocopying ALLOCATION BASES FOR COST POOLS DIRECT COSTS Professional compensation ANNUAL BUDGET ACTIVITY BASES PARNERS' CHARGABLE HOURS Paralegal compenation PARALEGAL CHARGABLE HOURS Travel ACTUAL DOLLARS SPENT Library and research support TIME SPENT ON RESEARCH Telephone Office salaries Other office expenses telephone Total telephone Photocopying Office salaries Other office expenses Photocopying expenses Total photocopying ALLOCATED INDIRECT COSTS General Overhead Rent Heat Taxes Insurance Accounting Total general overhead Total expenses TIME SPENT ON PHONE WITH CLIEN TIME SPENT ON PHOTOCOPYING PARTNERSCHARGABLE HOURS Exhibit 3 Activity Bases and Estimated Activity for the Year CHARGABLE HOURS ESTIMATED ACTIVITY FOR CURRENT YEAR PROFESSIONAL HOURS AL CHARGABLE HOURS PARALEGAL HOURS OLLARS SPENT DOLLARS NT ON RESEARCH LIBRARY STAFF HOURS NT ON PHONE WITH CLIENTS OFFICE STAFF HOURS NT ON PHOTOCOPYING OFFICE STAFF HOURS SCHARGABLE HOURS PROFESSIONAL HOURS RATE PER HOUR Exhibit 4 Traditional Costing Compared with ABC COSTS ASSIGNED TO CLIENTS FOR THE MONTH OF JANUARY TRADITIONAL COSTING CLIENT A B C D E DIRECT PROFESSIONAL TIME RATE PER HOUR NUMBER OF HOURS ACTIVITY-BASED COSTING DIRECT PROFESSION TIME DATA TO ASSIGN COSTS ASSOCIATED WITH ACTIVITY-BASED COSTING ALLOCATIONS Cost Driver Rate Traditional cost Partners charge rate is per hour Traditional cost Paralegal charge rate is per hour ABC cost Partners charge rate is per hour ABC cost Paralegal charge rate is per hour Paralegal hours by major client A 100 B 250 C 400 D 750 E 300 Total for month 1800 Travel associated with clients A B C D E Total travel none $ $ $ $ $ Library and research support HOURS SPENT 3,000.00 400.00 2,500.00 2,100.00 8,000.00 Telephone A B C D E Total hours spent 10 15 0 25 22 72 A B C D E Total hours spent 2 5 10 15 10 42 Photocopying A B C D E 3 10 5 10 12 40 mpared with ABC R THE MONTH OF JANUARY SIONAL TIME TOTAL Job Order Cost Milestone 1 OVERHEAD BILLED TO CLIENT RATE PER HOUR NUMBER OF HOURS TOTAL DIRECT PARALEGAL TIME Partners Bill rate is Paralegal bill rate is A B C D E Total for month Partners hours by major cleint 35 120 90 210 70 525 TOTAL COST ALLOCATED TO CLI Activity Based Cost Analysis Milestone 2 TRAVEL LIBRARY TELEPHONE per hour per hour Professional Bill BILL TO CLIENT Paralegal Bill AMOUNT BILLED TO CLIENT PHOTOCOPYING GENERAL OVERHEAD Profit TOTAL COSTS ALLOCATED TO CAMOUNT BILLED TO PROFIT Be sure to read the entire case. This is a summary of the requirements for Milestone 1 Implementing Cost Strategies to Improve Profitability Milestone 1 Requirements Step 1: Milestone 1 You begin by reviewing your understanding of activity based costing. In addition to the text, a useful resource is http://www.accountingcoach.com/activity-based-costing/explanation, https://www.youtube.com/watch?v=P2wU1d_vhW4. Note the following video addresses activity=based costing in a service organization: https://www.youtube.com/watch?v=pL4dKcRLdLc Step 2: Milestone 1 Review the budgeted income statement (Exhibit 1) for the current year. Use and EXCEL file. The budgeted income statement appears as the first sheet in the EXCEL file under the label \"Exhibit 1 budgeted income statement\". The four partners work 2,000 hours a year and estimate that they are able to charge 80% of their time to clients. Thus, some of the professional labor costs are assigned to overhead. Currently, the firm's accounting system only treats professional hours as direct. All other costs, such as the paralegal costs are treated as overhead. Determine the overhead rate per productive professional direct labor hour. Be sure you distinguish between the cost associated with each client as compared to the amount billed to each client for services rendered. Calculate the overhead application rate using the traditional method, using the sheet \"traditional overhead rate\" sheet\" Step 3: Milestone 1 - Traditional analysis (in EXCEL) Milestone 1 Use the sheet labeled \"Exhibit 4 - Traditional vs. ABC\" to show the total costs charged to each of the five clients for the month of January using the traditional cost allocation method. billed Use the overhead application rate you calculated in step Then determine the amount of revenue billed to each client. Remember, clients are billed for both paralegal hours and professional hours. Finally, determine the profitability by client for the month of January using the traditional cost allocation method