Professional Fees Earned Budget Day & Spieth, CPAs, offer three types of service

Question

Professional Fees Earned Budget

Day & Spieth, 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 March 31, 20Y6:

The average billing rate for staff is $150 per hour, and the average billing rate for partners is $270 per hour.

Prepare a professional fees earned budget for Day & Spieth, CPAs, for the year ending March 31, 20Y6.

For the Year Ending March 31, 20Y6

                                                 

Billable Hours Audit Department: Staff 32,500 Partners 4,900 Tax Department: Staff 23,700 Partners 3,000 Small Business Accounting Department: Staff 4,500 Partners 600

Explanation / Answer

Billable Hours Hourly Rate Total Revenue Audit Department: Staff 32500 150 4875000 Partners 4900 270 1323000 Total 37400 6198000 Tax Department: Staff 23700 150 3555000 Partners 3000 270 810000 Total 26700 4365000 Small Business Accounting Department: Staff 4500 150 675000 Partners 600 270 162000 Total 5100 837000 Total professional fees earned 11400000

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