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Garza and Neely, CPAs, are preparing their service revenue (sales) budget for th

ID: 2456584 • Letter: G

Question

Garza and Neely, CPAs, are preparing their service revenue (sales) budget for the coming year (2012). The practice is divided into three departments: auditing, tax, and consulting. Billable hours for each department, by quarter, are provided below.

Quarter 1

Quarter 2

Quarter 3

Quarter 4


Average hourly billing rates are: auditing $84, tax $93, and consulting $104.

Prepare the service revenue (sales) budget for 2012 by listing the departments and showing for each quarter and the year in total, billable hours, billable rate, and total revenue.

GARZA AND NEELY, CPAs
Sales Revenue Budget
For the Year Ending December 31, 2012

Quarter 1

Quarter 2

Dept.

Billable Hours

Billable Rate

Total Rev.

Billable Hours

Billable Rate

Total Rev.

Auditing

Tax

GARZA AND NEELY, CPAs
Sales Revenue Budget
For the Year Ending December 31, 2012

Quarter 3

Quarter 4

Dept.

Billable Hours

Billable Rate

Total Rev.

Billable Hours

Billable Rate

Total Rev.

GARZA AND NEELY, CPAs
Sales Revenue Budget
For the Year Ending December 31, 2012

Year

Dept.

Billable Hours

Billable Rate

Total Rev.

Auditing

Tax

Consulting

Department

Quarter 1

Quarter 2

Quarter 3

Quarter 4

Auditing 2,410 1,890 2,280 2,770 Tax 3,150 2,780 2,370 2,610 Consulting 1,750 1,750 1,750 1,750

Explanation / Answer

Answer:Answer:

GARZA AND NEELY, CPAs Sales Revenue Budget For the Year Ending December 31, 2012 Quarter 1 (hrs*Rate) Quarter 2 (hrs*Rate) Dept. Billable Hours Billable Rate Total Rev. Billable Hours Billable Rate Total Rev. Auditing 2410 84 202440 1890 84 158760 Tax 3150 92 289800 2780 92 255760 Consulting 1750 104 182000 1750 104 182000 GARZA AND NEELY, CPAs Sales Revenue Budget For the Year Ending December 31, 2012 Quarter 3 (hrs*Rate) Quarter 4 (hrs*Rate) Dept. Billable Hours Billable Rate Total Rev. Billable Hours Billable Rate Total Rev. Auditing 2280 84 191520 2770 84 232680 Tax 2370 92 218040 2610 92 240120 Consulting 1750 104 182000 1750 104 182000 GARZA AND NEELY, CPAs Sales Revenue Budget For the Year Ending December 31, 2012 Year Dept. Billable Hours Billable Rate Total Rev. Auditing 9350 84 785400 Tax 10910 92 1003720 Consulting 7000 104 728000 2517120