Question

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		2,480		1,920		2,300		2,570
Tax		3,170		2,510		2,300		2,640
Consulting		1,890		1,890		1,890		1,890

Average hourly billing rates are auditing $81, tax $93, and consulting $102.

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.

Answer 1

Service Revenue Budget
	Quarter 1			Quarter 2
	Billable Hours	Billable Rate	Total Rev.	Billable Hours	Billable Rate	Total Rev.
Auditing	2480	$         81	$      200,880	1920	$         81	$    155,520
Tax	3170	$         93	$      294,810	2510	$         93	$    233,430
Consulting	1890	$       102	$      192,780	1890	$       102	$    192,780
Totals			$      688,470			$    581,730
	Quarter 3			Quarter 4
	Billable Hours	Billable Rate	Total Rev.	Billable Hours	Billable Rate	Total Rev.
Auditing	2300	$         81	$      186,300	2570	$         81	$    208,170
Tax	2300	$         93	$      213,900	2640	$         93	$    245,520
Consulting	1890	$       102	$      192,780	1890	$       102	$    192,780
Totals			$      592,980			$    646,470
Service Revenue Budget
	Year
	Billable Hours	Billable Rate	Total Rev.
Auditing	9270	$         81	$      750,870
Tax	10620	$         93	$      987,660
Consulting	7560	$       102	$      771,120
Totals			$ 2,509,650