Question

Exercise 9-3 (Video) 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 Quarter 2 Department Quarter 1 Quarter 3 Quarter 4 Auditing Тах 2,480 1,920 2,300 2,570 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 Ouarter 1 Quarter 2 Total Rev Total Rev Billable Hours Billable Rate Billable Hours Billable Rate Dept. Auditing $ $ $ Таx Consulting Totals THOME AND CREDE, CPAS Service Revenue Budget Quarter 3 Quarter 4 Total Rev Billable Hours Billable Rate Billable Hours Billable Rate Total Rey, Dept. Auditing $ $ Таx Consulting Totals THOME AND CREDE, CPAS Service Revenue Budget

Answer 1

THOME AND CREDE, CPA’s
Service Revenue Budget
For the Year Ending December 31, 2020
Dept.	Quarter 1			Quarter 2
	Billable hours (a)	Billable rate (b)	Total rev. (a x b)	Billable hours (a)	Billable rate (b)	Total rev. (a x b)
Auditing	2,480	$81	200,880	1,920	$81	$155,520
Tax	3,170	$93	294,810	2,510	$93	$233,430
Consulting	1,890	$102	192,780	1,890	$102	$192,780
Totals			$688,470			$581,730

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THOME AND CREDE, CPA’s
Service Revenue Budget
For the Year Ending December 31, 2020
Dept.	Quarter 3			Quarter 4
	Billable hours (a)	Billable rate (b)	Total rev. (a x b)	Billable hours (a)	Billable rate (b)	Total rev. (a x b)
Auditing	2,300	$81	186,300	2,570	$81	$208,170
Tax	2,300	$93	213,900	2,640	$93	$245,520
Consulting	1,890	$102	192,780	1,890	$102	$192,780
Totals			$592,980			$646,470

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THOME AND CREDE, CPA’s
Service Revenue Budget
For the Year Ending December 31, 2020
Dept.	Year
	Billable hours (a)	Billable rate (b)	Total rev. (a x b)
Auditing	9,270 [2,480 + 1,920 + 2,300 + 2,570]	$81	$750,870
Tax	10,620 [3,170 + 2,510 + 2,300 + 2,640]	$93	$987,660
Consulting	7,560 [1,890 + 1,890 + 1,890 + 1,890]	$102	$771,120
Totals			$2,509,650