In: Accounting
Professional Fees Earned 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 | 36,200 | ||
Partners | 5,400 | ||
Tax Department: | |||
Staff | 26,400 | ||
Partners | 3,300 | ||
Small Business Accounting Department: | |||
Staff | 5,100 | ||
Partners | 700 |
The average billing rate for staff is $150 per hour, and the average billing rate for partners is $270 per hour.
Prepare a professional fees earned budget for Roberts and Chou, CPAs, for the year ending December 31, 2016.
Roberts and Chou, CPAs | |||
Professional Fees Earned Budget | |||
For the Year Ending December 31, 2016 | |||
Billable Hours | Hourly Rate | Total Revenue | |
Audit Department: | |||
Staff | $ | $ | |
Partners | |||
Total | $ | ||
Tax Department: | |||
Staff | $ | $ | |
Partners | |||
Total | $ | ||
Small Business Accounting Department: | |||
Staff | $ | $ | |
Partners | |||
Total | $ | ||
Total professional fees earned | $ |
--Requirement asked
Roberts and Chou, CPAs | |||
Professional Fees Earned Budget | |||
For the Year Ending December 31, 2016 | |||
Billable Hours | Hourly Rate | Total Revenue | |
Audit Department: | |||
Staff | 36,200 | $150 | $5,430,000 |
Partners | 5,400 | $270 | $1,458,000 |
Total | $6,888,000 | ||
Tax Department: | |||
Staff | 26,400 | $150 | $3,960,000 |
Partners | 3,300 | $270 | $891,000 |
Total | $4,851,000 | ||
Small Business Accounting Department: | |||
Staff | 5,100 | $150 | $765,000 |
Partners | 700 | $270 | $189,000 |
Total | $954,000 | ||
Total professional fees earned | $12,693,000 |