Chapter 9 Crede and Rensing. CPA’s are preparing their service revenue (sales) b
ID: 2350038 • Letter: C
Question
Chapter 9Crede and Rensing. CPA’s are preparing their service revenue (sales) budget for the coming year (2011). The practice is divided into three departments: auditing, tax, and consulting. Billable hours for each department, by quarter, are provided below.
Department quarter 1 quarter 2 quarter 3 quarter 4
Auditing 2162 1533 2028 2487
Tax 2993 2354 1913 2456
Consulting 1456 1456 1456 1456
Average hourly billing rates are: auditing $79, tax $93, consulting $105.
Complete the service revenue (sales) budget for 2011 by listing the departments and showing for each quarter and the year in total, billable hours, billable rate, and total revenue.
Crede and Rensing, CPA’s
Sales Revenue Budget
For the Year Ending December 31, 2011
Quarter 1
Dept Billable Hours Billable Rate Total Rev.
Auditing
Tax
Consulting
Totals
Quarter 2
Auditing
Tax
Consulting
Totals
Quarter 3
Auditing
Tax
Consulting
Totals
Quarter 4
Auditing
Tax
Consulting
Totals
TOTALS
Auditing
Tax
Consulting
totals
Explanation / Answer
Service Revenue Budget for 2011 Department 1 2 3 4 Total Rate Hours Revenue Hours Revenue Hours Revenue Hours Revenue Hours Revenue Auditing 80 2200 176000 1600 128000 2000 160000 2400 192000 8200 656000 Tax 90 3000 270000 2400 216000 2000 180000 2500 225000 9900 891000 Consulting 100 1500 150000 1500 150000 1500 150000 1500 150000 6000 600000 6700 596000 5500 494000 5500 490000 6400 567000 24100 2147000 Production budget for 2011 1 2 3 4 total Qty to be sold 5000 7000 8000 10000 30000 add clsoing 3500 4000 5000 3250 3250 less opening -2500 -3500 -4000 -5000 -2500 Qty to be produced 6000 7500 9000 8250 30750 Direct material purchse budget Jan Feb Mar Total Qty to be produced 10000 8000 5000 23000 x each unit requires 3 3 3 Material in pounds 30000 24000 15000 69000 add closing stock 7200 4500 3600 3600 less opening -9000 -7200 -4500 -9000 Qty to be purchased 28200 21300 14100 63600 x purchse price 2 2 2 2 Purchases in $ 56400 42600 28200 127200 Productioni budget for Jan an Feb Jan Feb Tpta; Qty to be sold 10000 12000 22000 add clsoing 3000 3250 3250 less opening -2500 -3000 -2500 Qty to be produced 10500 12250 22750 Direct material budget Jan Qty to be produced 10500 x each unit requires 2 Material in pounds 21000 add closing stock 9800 less opening -8400 Qty to be purchased 22400 x purchse price 3 Purchases in $ 67200
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.