Exercise 20-3 Garza and Neely, CPAs, are preparing their service revenue (sales)

Question

Exercise 20-3 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. Department Quarter 1 Quarter 2 Quarter 3 Quarter 4 Auditing 2,520 1,920 2,120 2,570 Tax 3,320 2,690 2,220 2,690 Consulting 1,680 1,680 1,680 1,680 Average hourly billing rates are: auditing $81, tax $95, and consulting $103. 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 Consulting $ $ 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. Auditing $ $ $ $ Tax Consulting $ $ 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 $

Explanation / Answer

CPAs Sales Revenue Budget For the Year Ending December 31, 2012 Total sales revenue for the company ($) Departments Auditing Tax Consulting Quarter 1 2 3 4 Total 1 2 3 4 Total 1 2 3 4 Total Billable hours 2520 1920 2120 2570 3320 2690 2220 2690 1680 1680 1680 1680 Billing Rates per hour ($) 81 81 81 81 95 95 95 95 103 103 103 103 Total Revenue ($) 204120 155520 171720 208170 315400 255550 210900 255550 173040 173040 173040 173040 Total ($) 739530 1037400 692160 2469090

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