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In: Accounting

Professional Fees Earned Budget for a Service Company Roberts and Chou, CPAs, offer three types of...

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 $

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Expert Solution

--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

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