Exercise 23-3 Thome and Crede, CPAs, are preparing their service revenue (sales)

Question

Exercise 23-3 Thome and Crede, CPAs, are preparing their service revenue (sales) budget for the coming year (2017). 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 Tax Consulting 2,390 3,160 1,670 1,870 2,550 1,670 2,390 2,280 1,670 2,730 2,750 1,670 Average hourly billing rates are auditing $82, tax $95, and consulting $102 Prepare the service revenue (sales) budget for 2017 by listing the departments and showing for each quarter and the year in total, billable hours, billable rate, and total revenue

Explanation / Answer

Dept. Billable hours Billable rate Total rev. Billable hours Billable rate Total rev. Billable hours Billable rate Total rev. Billable hours Billable rate Total rev. Billable hours Billable rate Total rev. Auditing 2390 82 195980 1870 82 153340 2390 82 195980 2730 82 223860 9380 82 769160 Consulting 3160 95 300200 2550 95 242250 2280 95 216600 2750 95 261250 10740 95 1020300 Tax 1670 102 170340 1670 102 170340 1670 102 170340 1670 102 170340 6680 102 681360 Totals 666520 565930 582920 655450 2470820

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