In: Accounting
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.
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 |