I am not sure how to apply the formula to this problem. I am not looking for the

Question

I am not sure how to apply the formula to this problem. I am not looking for the answer, but rather a break down of how to use the formual in a very simple way to follow step by step. Here is the problem:

Crede and Rensing, CPAs, 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 2,289 1,686 1,919 2,310
Tax 3,004 2,503 2,039 2,476
Consulting 1,416 1,416 1,416 1,416


Average hourly billing rates are: auditing $82, tax $92, and consulting $101.

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.

Explanation / Answer

To get the revenue budget by each quarter you just need to multiply the quarterly billable hours by their average hourly billing rates. For example - 1st quarter Auditing - 2,289 * 82 Tax - 3,004 * 92 Consulting - 1,416 * 101 The total of each equal the total revenue for the 1st quarter.

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