Exercise 21-3 Thome and Crede, CPAs, are preparing their service revenue (sales)

Question

  
Exercise 21-3
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       2,530       1,830       2,400       2,770
Tax       3,360       2,570       2,100       2,890
Consulting       1,690       1,690       1,690       1,690

Average hourly billing rates are auditing $81, tax $91, and consulting $105.

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.

THOME AND CREDE, CPAs
Sales Revenue Budget

Quarter 1
Quarter 2
Dept.
Billable Hours
Billable Rate
Total Rev.
Billable Hours
Billable Rate
Total Rev.
Auditing

$
$

$
$
Tax

Consulting
                  
Totals           $           $

THOME AND CREDE, CPAs
Sales Revenue Budget

Quarter 3
Quarter 4
Dept.
Billable Hours
Billable Rate
Total Rev.
Billable Hours
Billable Rate
Total Rev.
Auditing  

$
$

$
$
Tax  

Consulting                      
Totals          
$
$

THOME AND CREDE, CPAs
Sales Revenue Budget

Year
Dept.
Billable Hours
Billable Rate
Total Rev.
Auditing

$
$
Tax

Consulting
      
Totals           $

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Explanation / Answer

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Department Billable hours Billable rate Total Revenue Billable hours Billable rate Total Revenue Billable hours Billable rate Total Revenue Billable hours Billable rate Total Revenue Billable hours Billable rate Total Revenue Auditing 2530 81 204930 1830 81 148230 2400 81 194400 2770 81 224370 9530 81 771930 Tax 3360 91 305760 2570 91 233870 2100 91 191100 2890 91 262990 10920 91 993720 Consulting 1690 105 177450 1690 105 177450 1690 105 177450 1690 105 177450 6760 105 709800 Total 688140 559550 562950 664810 2475450

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