Forrester and Cohen is a small accounting firm, managed by Joseph Cohen since th

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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 Ma June Estimate of Billable Hours 500 1,020 1210 650 580 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. 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. Estimate of Billable CP ilable hours Reg. timeReg. time "Overtime""Overtime" Forrester Forrester cost hours cost hours cost Hours Jan. 610

Explanation / Answer

Management
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 Ma June Estimate of Billable Hours 500 1,020 1210 650 580 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. 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. Estimate of Billable CP ilable hours Reg. timeReg. time OvertimeOvertime Forrester Forrester cost hours cost hours cost Hours Jan. 610

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