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. Department Auditing Quarter 1 2,300 3,000 Quarter 2 1,600 2,200 1,500 Quarter 3 2,000 2,000 1,500 Quarter 4 2,400 2,500 1,500 Tax Consulting 1,500 Average hourly billing rates are auditing $80, tax $90, and consulting $110. 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 Quarter 1 Billable Rate Quarter 2 Billable Rate Dept. Billable Hours Total Rev. Billable Hours Total Rev. Auditing Tax Consulting Totals

Answer 1

Dept. Sales Revenue Budget Quarter 2 Quarter 3 Quarter 4 Billable Billable Billable Billable Billable Billable Total Rev. Total Rev. Total Rev. Hours Rate Hours Rate Hours Rate 1,600 $ 80 $128,000 2,000 $ 80 $160,000 2,400 $ 80 $192,000 2,200 $ 90 $198,000 2,000 $ 90 $180,000 2,500 $ 90 $225,000 1,500 $ 110 $ 165,000 1,500 $ 110 $165,000 | 1,500 $ 110 $ 165,000 $491,000 $ 505,000 $582,000 Quarter 1 Billable Billable Total Rev. Hours Rate 2,300 $ 80$184,000 3,000 $ 90 $270,000 1,500 $ 110 $165,000 $ 619,000 Auditing Tax Consulting Total Year Billable Billable Total Rev. Hours Rate 8,300 $ 80 $ 664,000 9,700$ 90 $ 873,000 6,000 $ 110 $ 660,000 $ 2,197,000 Total Rev = Billable Hours * Billable Rate Billable Hours (Year) = Total of all quarters billable hours