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Exercise 20-3
Garza 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 4
Auditing 2,560 1,750 2,200 2,740
Tax 3,110 2,750 2,140 2,790
Consulting 1,780 1,780 1,780 1,780

Average hourly billing rates are: auditing $82, tax $94, and consulting $105.

Prepare 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 revenue. Exercise 22-1 Stanton Company is planning to produce 2,100 units of product in 2012. Each unit requires 3.60 pounds of materials at $6.60 per pound and a half-hour of labor at $15.40 per hour. The overhead rate is 70% of direct labor.
(a) Compute the budgeted amounts for 2012 for direct materials to be used, direct labor, and applied overhead.
Direct materials $
Direct labor $
Overhead $

(b) Compute the standard cost of one unit of product. (Round answer to 2 decimal places, e.g. 2.75.)
Standard cost $

Brief Exercise 23-3 In Harley Company it costs $32 per unit ($18 variable and $14 fixed) to make a product that normally sells for $55. A foreign wholesaler offers to buy 4,950 units at $25 each. Harley will incur special shipping costs of $1 per unit. Assuming that Harley has excess operating capacity.
Indicate the net

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