Question

Exercise 22-03

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.

THOME AND CREDE, CPAs Service Revenue Budget choose the accounting period December 31, 2020For the Quarter Ending December 31, 2020For the Year Ending December 31, 2020
	Quarter 1			Quarter 2
Dept.	Billable Hours	Billable Rate	Total Rev.	Billable Hours	Billable Rate	Total Rev.
Auditing	enter a number of hours	$enter a dollar amount	$enter a dollar amount	enter a number of hours	$enter a dollar amount	$enter a dollar amount
Tax	enter a number of hours	enter a dollar amount	enter a dollar amount	enter a number of hours	enter a dollar amount	enter a dollar amount
Consulting	enter a number of hours	enter a dollar amount	enter a dollar amount	enter a number of hours	enter a dollar amount	enter a dollar amount
Totals			$enter a total dollar amount			$enter a total dollar amount

THOME AND CREDE, CPAs Service Revenue Budget choose the accounting period For the Year Ending December 31, 2020For the Quarter Ending December 31, 2020December 31, 2020
Quarter 3				Quarter 4
Dept.	Billable Hours	Billable Rate	Total Rev.	Billable Hours	Billable Rate	Total Rev.
Auditing	enter a number of hours	$enter a dollar amount	$enter a dollar amount	enter a number of hours	$enter a dollar amount	$enter a dollar amount
Tax	enter a number of hours	enter a dollar amount	enter a dollar amount	enter a number of hours	enter a dollar amount	enter a dollar amount
Consulting	enter a number of hours	enter a dollar amount	enter a dollar amount	enter a number of hours	enter a dollar amount	enter a dollar amount
Totals			$enter a total dollar amount			$enter a total dollar amount

THOME AND CREDE, CPAs Service Revenue Budget choose the accounting period For the Year Ending December 31, 2020For the Quarter Ending December 31, 2020December 31, 2020
Year
Dept.	Billable Hours	Billable Rate	Total Rev.
Auditing	enter a number of hours	$enter a dollar amount	$enter a dollar amount
Tax	enter a number of hours	enter a dollar amount	enter a dollar amount
Consulting	enter a number of hours	enter a dollar amount	enter a dollar amount
Totals			$enter a total dollar amount

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Answer 1

THOME AND CREDE, CPAs Service Revenue Budget

December 31, 2020 For the Quarter Ending December 31, 2020For the Year Ending December 31, 2020

Quarter 1			Quarter 2
Dept.	Billable Hours	Billable Rate $	Total Rev. $	Billable Hours	Billable Rate $	Total Rev. $
Auditing	2,480	81	2,00,880	1,920	81	1,55,520
Tax	3,170	93	2,94,810	2,510	93	2,33,430
Consulting	1,890	102	1,92,789	1,890	102	1,92,780
Total $			6,88,470			5,81,730

THOME AND CREDE, CPAs Service Revenue Budget

December 31, 2020 For the Quarter Ending December 31, 2020For the Year Ending December 31, 2020

Quarter 3			Quarter 4
Dept.	Billable Hours	Billable Rate $	Total Rev. $	Billable Hours	Billable Rate $	Total Rev. $
Auditing	2,300	81	1,86,300	2,570	81	2,08,170
Tax	2,300	93	2,13,900	2,640	93	2,45,520
Consulting	1,890	102	1,92,780	1,890	102	1,92,780
Total $			5,92,980			6,46,470

HOME AND CREDE, CPAs Service Revenue Budget

December 31, 2020 For the Quarter Ending December 31, 2020For the Year Ending December 31, 2020

Year
Dept.	Billable Hours	Billable Rate $	Total Rev. $
Auditing	9,270	81	7,50,870
Tax	10,620	93	9,87,660
Consulting	7,560	102	7,71,120
Total $	27,450		25,09,650