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Thome and Crede, CPAs, are preparing their service revenue (sales) budget for the coming year (2020)....

Thome and Crede, CPAs, are preparing their service revenue (sales) budget for the coming year (2020). 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 2,500 1,730 2,400 2,690
Tax 3,250 2,750 2,400 2,720
Consulting 1,780 1,780 1,780 1,780


Average hourly billing rates are auditing $85, tax $94, and consulting $105.

Prepare the service revenue (sales) budget for 2020 by listing the departments and showing for each quarter and the year in total, billable hours, billable rate, and total revenue.

Solutions

Expert Solution

Particulars DEPARTMENTS
Auditing Tax Consulting
Quarter 1 :
Billable Hours 2500 3250 1780
Hourly Billing rate 85 94 105
Quarter 1 Revenue $212,500 305,500 186,900
Quarter 2 :
Billable Hours 1730 2750 1780
Hourly Billing rate 85 94 105
Quarter 2 Revenue 147,050 258,500 186,900
Quarter 3 :
Billable Hours 2400 2400 1780
Hourly Billing rate 85 94 105
Quarter 3 Revenue 204,000 225,600 186,900
Quarter 4 :
Billable Hours 2690 2690 1780
Hourly Billing rate 85 94 105
Quarter 4 Revenue 228,650 252,860 186,900
Total Billing Hours for the year 9320 11090 7120
Hourly Billing rate 85 94 105
Total Yearly Revenue 792,200 1,042,460 747,600

ekkarill92 answered 3 years ago
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