Refer to the AccuTax Incorporated exhibit One of the partners is planning to retire at the end of the year. May Higgins, the sole remaining partner, plans to add a manager at an annual salary of $91,680. She expects the manager to work, on average, 45 hours a week for 45 weeks per year. She plans to change the required staff time for each hour spent to complete a tax return to the following: Simple Individual Return Partner Manager Senior consultant Consultant Business Return 0.4 hour 0.1 hour 0.5 hour Complex Individual Return 0.07 hour 0.13 hour 0.40 hour 0.40 hour 0.2 hour 0.8 hour The manager is salaried and earns no overtime pay. Senior consultants are salaried but receive time and a half for any overtime worked. The firm plans to keep all the senior consultants and adjust the number of consultants as needed including employing part-time consultants, who also are paid on an hourly basis. Higgins has also decided to have five supporting staff at $47,000 each. All other operating data remain unchanged. The manager will share 11% of any profit over $640,000 before bonus. Required: 1. What are the budgeted total cost for overtime hours worked by senior consultants? 2. How many full-time consultants should be budgeted? 3. Determine the manager's total compensation and total pretax operating income for the firm, assuming that the revenues from preparing tax returns remain unchanged. 1. What are the budgeted total cost for overtime hours worked by senior consultants? 2. How many full-time consultants should be budgeted? 3. Determine the manager's total compensation and total pretax operating income for the firm, assuming that the revenues from preparing tax returns remain unchanged. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the manager's total compensation and total pretax operating income for the firm, as preparing tax returns remain unchanged. Accu Tax Inc. Budgeted Operating Income For the Year ended December 31, 2022 Revenue $ 3,840,000 Payroll expenses: Partner $ 250,000 91,680 Manager Senior consultants-base pay 720,000 Senior consultantspay for overtime hours 0 Accu Tax Inc. Budgeted Operating Income For the Year ended December 31, 2022 Revenue $ 3,840,000 Payroll expenses: Partner $ Manager Senior consultantsbase pay 250,000 91,680 720,000 0 Senior consultantspay for overtime hours Consultants-Full-time 960,000 10,000 235,000 $ 2,266,680 $ 1,573,320 ConsultantsPart-time Support staff General and administrative expenses Operating income before bonus to manager Less: Manager's bonus Operating income before taxes Total compensation for the manager: Salary $ 1,573,320 Bonus Total $ 0 Refer to the AccuTax Incorporated exhibit One of the partners is planning to retire at the end of the year. May Higgins, the sole remaining partner, plans to add a manager at an annual salary of $91,680. She expects the manager to work, on average, 45 hours a week for 45 weeks per year. She plans to change the required staff time for each hour spent to complete a tax return to the following: Simple Individual Return Partner Manager Senior consultant Consultant Business Return 0.4 hour 0.1 hour 0.5 hour Complex Individual Return 0.07 hour 0.13 hour 0.40 hour 0.40 hour 0.2 hour 0.8 hour The manager is salaried and earns no overtime pay. Senior consultants are salaried but receive time and a half for any overtime worked. The firm plans to keep all the senior consultants and adjust the number of consultants as needed including employing part-time consultants, who also are paid on an hourly basis. Higgins has also decided to have five supporting staff at $47,000 each. All other operating data remain unchanged. The manager will share 11% of any profit over $640,000 before bonus. Required: 1. What are the budgeted total cost for overtime hours worked by senior consultants? 2. How many full-time consultants should be budgeted? 3. Determine the manager's total compensation and total pretax operating income for the firm, assuming that the revenues from preparing tax returns remain unchanged. 1. What are the budgeted total cost for overtime hours worked by senior consultants? 2. How many full-time consultants should be budgeted? 3. Determine the manager's total compensation and total pretax operating income for the firm, assuming that the revenues from preparing tax returns remain unchanged. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the manager's total compensation and total pretax operating income for the firm, as preparing tax returns remain unchanged. Accu Tax Inc. Budgeted Operating Income For the Year ended December 31, 2022 Revenue $ 3,840,000 Payroll expenses: Partner $ 250,000 91,680 Manager Senior consultants-base pay 720,000 Senior consultantspay for overtime hours 0 Accu Tax Inc. Budgeted Operating Income For the Year ended December 31, 2022 Revenue $ 3,840,000 Payroll expenses: Partner $ Manager Senior consultantsbase pay 250,000 91,680 720,000 0 Senior consultantspay for overtime hours Consultants-Full-time 960,000 10,000 235,000 $ 2,266,680 $ 1,573,320 ConsultantsPart-time Support staff General and administrative expenses Operating income before bonus to manager Less: Manager's bonus Operating income before taxes Total compensation for the manager: Salary $ 1,573,320 Bonus Total $ 0
