Question: Please help with these problems below, but with these numbers: c) Should the firm remain as is, with a total of 4 CPAs? A. The



Please help with these problems below, but with these numbers:
c) Should the firm remain as is, with a total of 4 CPAs? A. The firm should remain as it is. O B. The firm should not remain as it is. C. One would have to carefully examine the other 6 months to see if hiring is merited. Forrester and Cohen is a small accounting firm, managed by Joseph Cohen since the retirement in December of his partner Brad Forrester. Cohen and his 3 CPAs together bill 640 hours per month. When Cohen or another accountant bills more than 160 hours per month, he or she gets an additional "overtime" pay of $61.30 for each of the extra hours: this is above and beyond the $4,900 salary each draws during the month. (Cohen draws the same base pay as his employees.) Cohen strongly discourages any CPA from working (billing) more than 250 hours in any given month. The demand for billable hours for the firm over the next 6 months is estimated below: Month Jan. Feb. Mar. Apr. May Estimate of Billable Hours 610 490 1,020 1,230 660 570 June Cohen has an agreement with Forrester, his former partner, to help out during the busy tax season, up to 250 hours in any given month if needed, for an hourly fee of $135. Cohen will not even consider laying off one of his colleagues in the case of a slow economy. He could, however, hire another CPA at the same salary, as business dictates. a) Develop an aggregate plan for the 6-month period (enter your responses as whole numbers). Use regular time, then overtime, then Forrester, and then hire additional CPAs if needed. A large St. Louis feed mill, Robert Orwig Processing, prepares its 6-month aggregate plan by forecasting demand for 50-pound bags of cattle feed as follows: January, 1,100 bags; February, 1,300; March, 1,250; April, 1,450; May, 1,500; and June, 1,500. The feed mill plans to begin the new year with no inventory left over from the previous year and backorders are not permitted. It projects that capacity (during regular hours) for producing bags of feed will remain constant at 800 until the end of April, and then increase to 1,100 bags per month when a planned expansion is completed on May 1. Overtime capacity is set at 400 bags per month until the expansion, at which time it will increase to 500 bags per month. A friendly competitor in Sioux City, lowa, is also available as a backup source to meet demand but can provide only 300 bags total during the 6-month period. Develop a 6-month production plan for the feed mill using the transportation method. Cost data are as follows: Regular-time cost per bag (until April 30) Regular-time cost per bag (after May 1) Overtime cost per bag (during entire period) Cost of outside purchase per bag Carrying cost per bag per month $14.00 $12.00 $22.00 $27.00 $2.00 Developing a 6-month production plan for the feed mill using the transportation method, the total cost is $ (enter your response as a whole number). Note: For the CPA column, only include Cohen, his 3 CPAs, and any new CPAs he may hire in your total. Do NOT include Forrester. Month Estimate of Billable Hours CPAs Reg. time billable hours Reg. time cost "Overtime" hours "Overtime" cost Forrester hours Forrester cost Jan. 600 620 Feb. 500 620 O Mar. 1,010 620 $ 20,400 $ 20,400 $ 20,400 $ 20400 $ 20400 $ 20,400 $0 $ 0 $ 1,250 | $ 27,500 380 $0 $0 $ 25,004 $ 25,004 $ 1,316 $ 0 | | 10 220 Apr. 1,220 620 380 May 640 620 $0 20 0 June 580 4 / 620 / 0 1 $ 0 b) Compute the cost of Cohen's plan of using overtime and Forrester. The cost of Cohen's plan is $ 202.474 (enter vour response as a whole number). c) Should the firm remain as is, with a total of 4 CPAs? A. The firm should remain as it is. O B. The firm should not remain as it is. C. One would have to carefully examine the other 6 months to see if hiring is merited. Forrester and Cohen is a small accounting firm, managed by Joseph Cohen since the retirement in December of his partner Brad Forrester. Cohen and his 3 CPAs together bill 640 hours per month. When Cohen or another accountant bills more than 160 hours per month, he or she gets an additional "overtime" pay of $61.30 for each of the extra hours: this is above and beyond the $4,900 salary each draws during the month. (Cohen draws the same base pay as his employees.) Cohen strongly discourages any CPA from working (billing) more than 250 hours in any given month. The demand for billable hours for the firm over the next 6 months is estimated below: Month Jan. Feb. Mar. Apr. May Estimate of Billable Hours 610 490 1,020 1,230 660 570 June Cohen has an agreement with Forrester, his former partner, to help out during the busy tax season, up to 250 hours in any given month if needed, for an hourly fee of $135. Cohen will not even consider laying off one of his colleagues in the case of a slow economy. He could, however, hire another CPA at the same salary, as business dictates. a) Develop an aggregate plan for the 6-month period (enter your responses as whole numbers). Use regular time, then overtime, then Forrester, and then hire additional CPAs if needed. A large St. Louis feed mill, Robert Orwig Processing, prepares its 6-month aggregate plan by forecasting demand for 50-pound bags of cattle feed as follows: January, 1,100 bags; February, 1,300; March, 1,250; April, 1,450; May, 1,500; and June, 1,500. The feed mill plans to begin the new year with no inventory left over from the previous year and backorders are not permitted. It projects that capacity (during regular hours) for producing bags of feed will remain constant at 800 until the end of April, and then increase to 1,100 bags per month when a planned expansion is completed on May 1. Overtime capacity is set at 400 bags per month until the expansion, at which time it will increase to 500 bags per month. A friendly competitor in Sioux City, lowa, is also available as a backup source to meet demand but can provide only 300 bags total during the 6-month period. Develop a 6-month production plan for the feed mill using the transportation method. Cost data are as follows: Regular-time cost per bag (until April 30) Regular-time cost per bag (after May 1) Overtime cost per bag (during entire period) Cost of outside purchase per bag Carrying cost per bag per month $14.00 $12.00 $22.00 $27.00 $2.00 Developing a 6-month production plan for the feed mill using the transportation method, the total cost is $ (enter your response as a whole number). Note: For the CPA column, only include Cohen, his 3 CPAs, and any new CPAs he may hire in your total. Do NOT include Forrester. Month Estimate of Billable Hours CPAs Reg. time billable hours Reg. time cost "Overtime" hours "Overtime" cost Forrester hours Forrester cost Jan. 600 620 Feb. 500 620 O Mar. 1,010 620 $ 20,400 $ 20,400 $ 20,400 $ 20400 $ 20400 $ 20,400 $0 $ 0 $ 1,250 | $ 27,500 380 $0 $0 $ 25,004 $ 25,004 $ 1,316 $ 0 | | 10 220 Apr. 1,220 620 380 May 640 620 $0 20 0 June 580 4 / 620 / 0 1 $ 0 b) Compute the cost of Cohen's plan of using overtime and Forrester. The cost of Cohen's plan is $ 202.474 (enter vour response as a whole number)
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