Garcia and buffet a local cpa firm has budgeted 100000 in

Reference no: EM13566685

Garcia and Buffet, a local CPA firm, has budgeted $100,000 in fixed expenses per month for the tax department. It has also budgeted variable costs of $5 per tax return prepared for supplies, $35 per return for labor, and $10 per return for computer time.

The firm expects revenue from tax return preparation to be $300,000, based on 2,000 tax returns at $150 each. During the current month, 1,850 tax returns were actually prepared, at an average fee of $147 each. Actual variable costs were $9,100 for supplies, $65,000 for labor, and $18,000 for computer time. Actual fixed costs were $100,000.

Required

a) Prepare a flexible budget for the tax department of Garcia and Buffet for the current month.

b) Refer to the information above. Compute the flexible budget varaiance for Garcia and Buffet.

Reference no: EM13566685

Questions Cloud

Transaction number date description 1 employees are paid : transaction number date description 1 employees are paid bi-monthly on the first day of the month for work performed

Lance company paid federal income taxes of 496500 the : lance company an accrual basis corporation reported taxable income of 1560000 for 2013. included in the computation

Select a story from the bible be sure to cite which version : 1.select a story from the bible be sure to cite which version of the bible and passages you are using that addresses an

The market index has a standard deviation of 22 and the : stock expected return beta firm specific standard deviationacme 13 0.8 30bundu 18 1.2 40the market index has a standard

Garcia and buffet a local cpa firm has budgeted 100000 in : garcia and buffet a local cpa firm has budgeted 100000 in fixed expenses per month for the tax department. it has also

What is the divisions margin what is the divisions turnover : glass wares is a division of a major corporation. the following data are for the latest year of

How does social engineering work what kind of information : how does social engineering work? what kind of information do they use to prepare?how does it work? what kind of

The risk-free rate rrf is 6 percent and the market risk : cartwright brothersstock is currently selling for 40 a share. the stock is expected to pay a 2 dividend at the end of

What is the fair value of the stock for which no dividend : what is the fair value of the stock for which no dividend will be paid for next four years but 2.00 dividend per share

User Account

All Pages