Professional Fees Earned Budget for a Service Company Roberts and Chou, CPAs, of
ID: 2395928 • Letter: P
Question
Professional Fees Earned Budget for a Service Company
Roberts and Chou, CPAs, offer three types of services to clients: auditing, tax, and small business accounting. Based on experience and projected growth, the following billable hours have been estimated for the year ending December 31, 2016:
The average billing rate for staff is $135 per hour, and the average billing rate for partners is $255 per hour.
Prepare a professional fees earned budget for Roberts and Chou, CPAs, for the year ending December 31, 2016.
Billable Hours Audit Department: Staff 42,600 Partners 6,400 Tax Department: Staff 32,400 Partners 4,100 Small Business Accounting Department: Staff 6,000 Partners 800Explanation / Answer
Roberts and Chou, CPAs Professional Fees Earned Budget For the Year Ending December 31, 2016 Billable Hours Hourly Rate Total Revenue Audit Department: Staff 42600 135 5751000 Partners 6400 255 1632000 Total 7383000 Tax Department: Staff 32400 135 4374000 Partners 4100 255 1045500 Total 5419500 Small Business Accounting Department: Staff 6000 135 810000 Partners 800 255 204000 Total 1014000 Total professional fees earned 13816500
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