Thome and Crede, CPAs, are preparing their service revenue (sales) budget for th

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 Auditing 2,390 1,870 2,390 2,730 Tax 3,160 2,550 2,280 2,750 Consulting 1,670 1,670 1,670 1,670 Average hourly billing rates are auditing $82, tax $95, 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.

Explanation / Answer

Sales Revenue (sales) Budget Avg. Hourly Billing Rate Q1 Q2 Q3 Q4 Total Hours Amount Hours Amount Hours Amount Hours Amount Hours Amount A B C = A X B D E = A X D F G = A X F H I = A X I J=B+D+F+H K=C+E+G+I Auditing                       82          2,390          195,980          1,870          153,340          2,390          195,980          2,730          223,860             9,380              769,160 Tax                       95          3,160          300,200          2,550          242,250          2,280          216,600          2,750          261,250           10,740          1,020,300 Consulting                     102          1,670          170,340          1,670          170,340          1,670          170,340          1,670          170,340             6,680              681,360 Total          666,520          565,930          582,920          655,450          2,470,820

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.