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ACC/561 Wiley PlusE20-3Garza and Neely CPAs are preparing their service revenue (sales) budget for the coming year (2012). The practice is divided into three departments: auditing tax and consulting. Billable hours for each department by quarter are provided below.Department Quarter 1 Quarter 2 Quarter 3 Quarter 4Auditing 2400 1860 2310 2680Tax 3360 2800 2240 2820Consulting 1730 1730 1730 1730Average hourly billing rates are: auditing $83 tax $93 and consulting $105.InstructionsPrepare the service revenue (sales) budget for 2012 by listing the departments and showing for each quarter and the year in total billable hours billable rate and total revenueE22-1 Stanton Company is planning to produce 1400 units of product in 2012. Each unit requires 3.50 pounds of materials at $7.00 per pound and a half-hour of labor at $12.60 per hour. The overhead rate is 40% of direct labor.Instructions(a)Compute the budgeted amounts for 2012 for direct materials to be used direct labor and applied overhead.(b)Compute the standard cost of one unit of product.BE23-3In Harley Company it costs $29 per unit ($20 variable and $9 fixed) to make a product that normally sells for $52. A foreign wholesaler offers to buy 3180 units at $26 each. Harley will incur special shipping costs of $2 per unit. Assuming that Harley has excess operating capacity prepare an incremental analysis that indicates the net income (loss) Harley would realize by accepting the special order. Should the order be accepted?BE23-4Vintech Manufacturing incurs unit costs of $8 ($5 variable and $3 fixed) in making a subassembly part for its finished product. A supplier offers to make 19700 of the part at $5.90 per unit. If the offer is accepted Beamer will save all variable costs but no fixed costs.Prepare an analysis showing the total cost saving if any Beamer will realize by buying the part. What should they do?BE23-6Ridley Company has a factory machine with a book value of $97200 and a remaining useful life of 4 years. A new machine is available at a cost of $190800. This machine will have a 4-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $556000 to $402200.Prepare an analysis showing whether the old machine should be retained or replaced.

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