Thome and Crede, CPAs, are preparing their service revenue (sales) budget for th
ID: 2458952 • Letter: T
Question
Thome and Crede, CPAs, are preparing their service revenue (sales) budget for the coming year (2017). 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
Average hourly billing rates are auditing $82, tax $93, and consulting $102.
Prepare the service revenue (sales) budget for 2017 by listing the departments and showing for each quarter and the year in total, billable hours, billable rate, and total revenue.
Quarter 1
Quarter 2
Dept.
Billable Hours
Billable Rate
Total Rev.
Billable Hours
Billable Rate
Total Rev.
Auditing
Tax
Consulting
Quarter 3
Quarter 4
Dept.
Billable Hours
Billable Rate
Total Rev.
Billable Hours
Billable Rate
Total Rev.
Year
Dept.
Billable Hours
Billable Rate
Total Rev.
Auditing
Tax
Consulting
Department
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Auditing 2,520 1,870 2,100 2,620 Tax 3,150 2,790 2,310 2,680 Consulting 1,770 1,770 1,770 1,770Explanation / Answer
THOME AND CREDE, CPAs Sales Revenue Budget For the Year Ending December 31, 2017For the Quarter Ending December 31, 2017December 31, 2017 Quarter 1 Quarter 2 Dept. Billable Hours Billable Rate Total Rev. Billable Hours Billable Rate Total Rev. Auditing $2,520 $82 $206,640 $1,870 $82 $153,340 Tax $3,150 $93 $292,950 $2,790 $93 $259,470 Consulting $1,770 $102 $180,540 $1,770 $102 $180,540 Totals $680,130 $593,350 THOME AND CREDE, CPAs Sales Revenue Budget For the Year Ending December 31, 2017For the Quarter Ending December 31, 2017December 31, 2017 Quarter 3 Quarter 4 Dept. Billable Hours Billable Rate Total Rev. Billable Hours Billable Rate Total Rev. Auditing $2,100 $82 $172,200 $2,620 $82 $214,840 Tax $2,310 $93 $214,830 $2,680 $93 $249,240 Consulting $1,770 $102 $180,540 $1,770 $102 $180,540 Totals $567,570 $644,620 THOME AND CREDE, CPAs Sales Revenue Budget For the Quarter Ending December 31, 2017For the Year Ending December 31, 2017December 31, 2017 Year Dept. Billable Hours Billable Rate Total Rev. Auditing $9,110 $82 $747,020 Tax $10,930 $93 $1,016,490 Consulting $7,080 $102 $722,160 Totals $2,485,670
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