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Ch_20_HW_Solutions

Ch_20_HW_Solutions - Chapter 20 Homework Solutions CD-1 The...

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Chapter 20 Homework Solutions CD-1. The three major objectives of budgeting are (1) to establish specific goals for future operations, (2) to direct and coordinate plans to achieve the goals, and (3) to periodically compare actual results with the goals. CD-11. The first step in preparing a master budget is estimating the sales levels of each product by regions or territories. Ex. 20–6 JEFFRIES AND VALDEZ, CPAs Professional Fees Budget For the Year Ending December 31, 2006 Billable Hourly Total Hours Rate Revenue Audit Department: Staff ......................................................... 32,500 $110 $ 3,575,000 Partners .................................................. 4,800 $250 1,200,000 Total ................................................... 37,300 $ 4,775,000 Tax Department: Staff ......................................................... 28,700 $110 $ 3,157,000 Partners .................................................. 3,950 $250 987,500 Total ................................................... 32,650 $ 4,144,500 Computer Consulting Department: Staff ......................................................... 24,600 $110 $ 2,706,000 Partners .................................................. 5,700 $250 1,425,000 Total ................................................... 30,300 $ 4,131,000 Total professional fees ............................... $ 13,050,500
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Ex. 20–3 a. TOWERS COMPANY—MOLDING DEPARTMENT Flexible Production Budget For the Three Months Ending March 31, 2006 January February March Units of production ......................... 55,000 50,000 45,000 Wages .............................................. $594,000 $540,000 $486,000 Utilities ............................................. 99,000 90,000 81,000 Depreciation .................................... 70,000 70,000 70,000 Total ................................................. $763,000 $700,000 $637,000 Supporting calculations: January February March Units of production ......................... 55,000 50,000 45,000
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