Professional Fees Earned Budget for a Service Company Rollins and Cohen, CPAs, o

Question

Professional Fees Earned Budget for a Service Company

Rollins and Cohen, 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, 20Y7:

The average billing rate for staff is $150 per hour, and the average billing rate for partners is $320 per hour.

Prepare a professional fees earned budget for Rollins and Cohen, CPAs, for the year ending December 31, 20Y7.

Billable Hours Audit Department: Staff 22,400 Partners 7,900 Tax Department: Staff 13,200 Partners 5,500 Small Business Accounting Department: Staff 3,000 Partners 600

Explanation / Answer

ROLLINS AND COHEN, CPAs Professional Fees Earned Budget For the Year Ending December 31, 20Y7 Billable Hourly Total Hours Rate Revenue Audit Department: Staff 22400 150 3360000 Partners 7900 320 2528000 Total 5888000 Tax Department: Staff 13200 150 1980000 Partners 5500 320 1760000 Total 3740000 Small Business Accounting Department: Staff 3000 150 450000 Partners 600 320 192000 Total 642000 Total professional fees earned 10270000

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