Exercise 10-40 (Algo) Budgeting for a Service Firm [LO 10-6] Return Return 0.07 hour 0.1 hour 0.40 hour 2.40 hour Senior consultant Refer to the Acculax 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 591 440. 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: Complex Simple Individual Individual Business Return Partner 0.4 hour Manager 0.1 hour 0.5 hour 2.2 hour Consultant 2.8 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 $43.000 each. All other operating data remain unchanged. The manager will share 9% of any profit over $620.000 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. comntate this question hy entering your answers in the tabs below. dry 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 What are the budgeted total cost for overtime hours worked by senior consultants? Budgeted total cost for overtime Required Required 2 > I 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. Book Complete this question by entering your answers in the tabs below. Required Required 1 Tences Required How many full-time consultants should be budgeted? (Round down your answer to nearest whole number.) Number of full time consultants Check my we 6 10 point buk Pynt References Tax Inc thided Operating Income For the Year endid December 31, 2022 Revenue Payroll expenses Partner Manager Senior consultants-base pay Senior consultants-pay for overtime hours Consultants-Full-time Consultants-Part-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 Bonus 5 Total $ 0 $ 0 5 0 0
