Memo. Required: Write a memo for the following scenario: You have been hired as the new operations manager, cost accountant, and marketing manager for a new tax practice in Fayetteville, NC. You are responsible for the name of the business, location, phones, website, and any marketing that you suggest. You do not do any tax preparation work, so your salary is not in the product cost. Your salary is $42,000 per year, plus benefits, and you get $1.00 per tax return as an incentive. After tax season, you work day on Friday and get 3 weeks paid time off at Christmas. Based on the following information, construct a memo that gives the direct materials, direct labor, overhead, and period costs for the firm. Your final goal is to develop a cost per tax return to charge to potential clients. This is a real-world application and can have positive and negative issues. Cost Data: $2.00 per tax return for paper and printing $5.00 per tax return for software $30.00 per tax return for direct labor. Mr. McKinzie has agreed to prepare all tax returns for $30.00 per hour and can do all tax returns in 1-hour. He is an independent contractor, thus no payroll taxes or benefits. The partner reviews the tax returns, and spends hour per return or $10.00 in review. This is QC for the process and not direct labor. The partner makes $7,000 per month as a draw. There are no taxes paid by the practice, as this is a partnership. His wife works as the receptionist and is paid $3,000 per month, as a draw. Your taxes, benefits and insurance are $1,500 per month for computation purposes. Firm costs: 1,000 square feet and the office is for tax preparation and processing. The rest is administrative and front office. Rent- $2,000 per month Phone/Internet- $400 per month Copier- $400 per month Utilities- $200 per month Supplies- $200 per month Insurance- $100 per month Errors and Omission Insurance $200 per month (100% charged to tax preparations) Depreciation on computer and fixtures is $200 per month. (1/2 allocated to tax preparations) Miscellaneous firm costs are $400 per month and are not allocated to tax preparations. You expect to do 200 tax returns per month. Presentations- Memo format, 2-3 paragraphs for topic and comments. 1- Firm Name, location, website, and any marketing ideas 2- Direct Materials Costs 3- Direct Labor Costs 4- Overhead Costs 5- Overhead Costs (if needed) 6- Comments on costs 7- Price per Return

Memo. Required: Write a memo for the following scenario: You have been hired as the new operations manager, cost accountant, and marketing manager for a new tax practice in Fayetteville, NC. You are responsible for the name of the business, location, phones, website, and any marketing that you suggest. You do not do any tax preparation work, so your salary is not in the product cost. Your salary is $42,000 per year, plus benefits, and you get $1.00 per tax return as an incentive. After tax season, you work day on Friday and get 3 weeks paid time off at Christmas. Based on the following information, construct a memo that gives the direct materials, direct labor, overhead, and period costs for the firm. Your final goal is to develop a cost per tax return to charge to potential clients. This is a real-world application and can have positive and negative issues. Cost Data: $2.00 per tax return for paper and printing $5.00 per tax return for software $30.00 per tax return for direct labor. Mr. McKinzie has agreed to prepare all tax returns for $30.00 per hour and can do all tax returns in 1-hour. He is an independent contractor, thus no payroll taxes or benefits. The partner reviews the tax returns, and spends hour per return or $10.00 in review. This is QC for the process and not direct labor. The partner makes $7,000 per month as a draw. There are no taxes paid by the practice, as this is a partnership. His wife works as the receptionist and is paid $3,000 per month, as a draw. Your taxes, benefits and insurance are $1,500 per month for computation purposes. Firm costs: 1,000 square feet and the office is for tax preparation and processing. The rest is administrative and front office. Rent- $2,000 per month Phone/Internet- $400 per month Copier- $400 per month Utilities- $200 per month Supplies- $200 per month Insurance- $100 per month Errors and Omission Insurance $200 per month (100% charged to tax preparations) Depreciation on computer and fixtures is $200 per month. (1/2 allocated to tax preparations) Miscellaneous firm costs are $400 per month and are not allocated to tax preparations. You expect to do 200 tax returns per month. Presentations- Memo format, 2-3 paragraphs for topic and comments. 1- Firm Name, location, website, and any marketing ideas 2- Direct Materials Costs 3- Direct Labor Costs 4- Overhead Costs 5- Overhead Costs (if needed) 6- Comments on costs 7- Price per Return