Professional Labor Cost Budget for a Service Company Roberts and Chou, CPAs, off

Question

Professional Labor Cost Budget for a Service Company Roberts and Chou, CPAs, offer three types of services to clients: auditing, tax, and small business accounting. Based on experience and projected growth, the following billable hours have been estimated for the year ending December 31, 2016: Billable Hours Audit Department: Staff 32,700 Partners 4,900 Tax Department: Staff 24,500 Partners 3,100 Small Business Accounting Department: Staff 4,300 Partners 600 Based on the data provided above and assuming that the average compensation per hour for staff is $45 and for partners is $140, prepare a professional labor cost budget for each department for Roberts and Chou, CPAs, for the year ending December 31, 2016. Roberts and Chou, CPAs Professional Labor Cost Budget For the Year Ending December 31, 2016 Staff Partners Audit department hours 125 125 Tax department hours Small business accounting department hours Total hours Average compensation per hour x $ x $ Total professional labor cost $ $ Feedback Be sure to separate the departments and within each department separate the hours for staff from hours for partners. Learning Objective 4. Check My Work

Explanation / Answer

Labor Cost Budget

for the year ending December 31,2016

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