Here is additional information available to Chip and Joanna: Professional Labor
ID: 2497695 • Letter: H
Question
Here is additional information available to Chip and Joanna:
Professional Labor Hours
Partners................................................................................................................................ 4,000
Associates............................................................................................................................. 14,000
Staff...................................................................................................................................... 22,000
Partners have a billing rate of $225 per hour and actually earn $110 per hour.
Associates bill out at $140 per hour and earn $85 per hour.
Staff bill out at a rate of $75 per hour and earn $35 per hour.
Required:
Combine the information from Problem 4 with this additional information and prepare a budgeted income statement for the year ended December 31, 2015.
Chip and Joanna Budgeted Income Statement For the Year Ended December 31, 2015 Revenues Operating costs: Professional labor Overhead support Other expenses Operating incomeExplanation / Answer
Answer:
Budgeted Income Statement for the yaer ended on 31.12.2015
Revenue from Billings $ 4,510,000
(4,000 x $ 225 + 14,000 x $ 140 + 22,000 x $ 75)
Less Operating Costs:
Professional Labor ($ 2,400,000)
(4,000 x $ 110 + 14,000 x $ 85 + 22,000 x $ 35)
Overhead Support ($ 1,361,000)
Other Expenses ($ 247,000)
Operating Income $ 502,000
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