Jeffries and Valdez, CPAs, offer three types of services to clients: auditing, tax, and computer consulting. Based on experience and projected growth, the following billable hours have been estimated for the year ending December 31, 2006:
Billable Hours
Audit Department:
Staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,500
Partners . . . . . . . . . . . . . . . . . . . . . . . . . 4,800
Tax Department:
Staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,700
Partners . . . . . . . . . . . . . . . . . . . . . . . . . 3,950
Computer Consulting Department:
Staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,600
Partners . . . . . . . . . . . . . . . . . . . . . . . . . 5,700
The average billing rate for staff is $110 per hour, and the average billing rate for partners is $250 per hour. Prepare a professional fees budget for Jeffries and Valdez, CPAs, for the year ending December 31, 2006, using the following column headings and showing the estimated professional fees by type of service rendered:
Billable Hours Hourly Rate Total Revenue