Question

Exercise 21-3

Thome and Crede, CPAs, are preparing their service revenue (sales) budget for the coming year (2017). 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		2,530		1,850		2,320		2,740
Tax		3,250		2,680		2,140		2,690
Consulting		1,770		1,770		1,770		1,770

Average hourly billing rates are auditing $83, tax $94, and consulting $102.

Prepare the service revenue (sales) budget for 2017 by listing the departments and showing for each quarter and the year in total, billable hours, billable rate, and total revenue.

THOME AND CREDE, CPAs Sales Revenue Budget For the Year Ending December 31, 2017December 31, 2017For the Quarter Ending December 31, 2017
	Quarter 1			Quarter 2
Dept.	Billable Hours	Billable Rate	Total Rev.	Billable Hours	Billable Rate	Total Rev.
Auditing		$	$		$	$
Tax
Consulting
Totals			$			$

THOME AND CREDE, CPAs Sales Revenue Budget December 31, 2017For the Quarter Ending December 31, 2017For the Year Ending December 31, 2017
Quarter 3				Quarter 4
Dept.	Billable Hours	Billable Rate	Total Rev.	Billable Hours	Billable Rate	Total Rev.
Auditing		$	$		$	$
Tax
Consulting
Totals			$			$

THOME AND CREDE, CPAs Sales Revenue Budget For the Year Ending December 31, 2017December 31, 2017For the Quarter Ending December 31, 2017
Year
Dept.	Billable Hours	Billable Rate	Total Rev.
Auditing		$	$
Tax
Consulting
Totals			$

Answer 1

Prepare the service revenue (sales) budget for 2017 by listing the departments and showing for each quarter and the year in total, billable hours, billable rate, and total revenue.

THOME AND CREDE, CPAs Sales Revenue Budget For the Year Ending December 31, 2017
	Quarter 1			Quarter 2
Dept.	Billable Hours	Billable Rate	Total Rev.	Billable Hours	Billable Rate	Total Rev.
Auditing	2530	$83	$209990	1850	$83	$153550
Tax	3250	94	305500	2680	94	251920
Consulting	1770	102	180540	1770	102	180540
Totals			$ 696030			$ 586010

THOME AND CREDE, CPAs Sales Revenue Budget For the Year Ending December 31, 2017
Quarter 3				Quarter 4
Dept.	Billable Hours	Billable Rate	Total Rev.	Billable Hours	Billable Rate	Total Rev.
Auditing	2320	$ 83	$192560	2740	$ 83	$ 227420
Tax	2140	94	201160	2690	94	252860
Consulting	1770	102	180540	1770	102	180540
Totals			$ 574260			$660820

THOME AND CREDE, CPAs Sales Revenue Budget For the Year Ending December 31, 2017December 31, 2017For the Quarter Ending December 31, 2017
Year
Dept.	Billable Hours	Billable Rate	Total Rev.
Auditing	9440	$ 83	$ 783520
Tax	10760	94	1011440
Consulting	7080	102	722160
Totals			$2517120