Exercise 203 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.
Average hourly billing rates are: auditing $81, tax $94, and consulting $102. 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 221
(b) Compute the standard cost of one unit of product. (Round answer to 2 decimal places, e.g. 2.75.)
Standard cost 
$ 22.89 
Brief Exercise 233
In Harley Company it costs $28 per unit ($19 variable and $9 fixed) to make a product that normally sells for $46. A foreign wholesaler offers to buy 4,450 units at $27 each. Harley will incur special shipping costs of $2 per unit. Assuming that Harley has excess operating capacity.
Indicate the net income (loss) Harley would realize by accepting the special order. (If an amount reduces the net income for Increase (Decrease) column then enter with a negative sign preceding the number e.g. 15,000 or parenthesis, e.g. (15,000). Enter all other amounts in all other columns as positive and subtract where necessary.)
Reject 
Accept 
Net Income 

The special order should beaccepted. 
Brief Exercise 234
Vintech Manufacturing incurs unit costs of $7 ($5 variable and $2 fixed) in making a subassembly part for its finished product. A supplier offers to make 15,500 of the part at $5.90 per unit. If the offer is accepted, Vintech will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Vintech will realize by buying the part. (If an amount reduces the net income for Increase (Decrease) column then enter with a negative sign preceding the number e.g. 15,000 or parenthesis, e.g. (15,000). Enter all other amounts in all other columns as positive and subtract where necessary.)

Brief Exercise 236
Ridley Company has a factory machine with a book value of $80,300 and a remaining useful life of 5 years. A new machine is available at a cost of $192,400. This machine will have a 5year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $552,400 to $364,800. Prepare an analysis showing whether the old machine should be retained or replaced. (If an amount reduces the net income for Increase (Decrease) column then enter with a negative sign preceding the number e.g. 15,000 or parenthesis, e.g. (15,000). Enter all other amounts in all other columns as positive and subtract where necessary.)

