1. Walker and Hall, CPAs, are preparing their service revenue (sales) budget for the coming year (2022). The practice is divided into three departments: auditing, tax, and consulting. Billable hours for each department, by quarter, are provided here.

Department		Quarter 1		Quarter 2		Quarter 3		Quarter 4
Auditing		2,760		1,920		2,400		2,880
Tax		3,600		2,640		2,400		3,000
Consulting		1,800		1,800		1,800		1,800

Average hourly billing rates are auditing $104, tax $112, and consulting $128. Prepare the service revenue (sales) budget for 2022 by listing the departments and showing for each quarter and the year in total, billable hours, billable rate, and total revenue.

2. Cullumber Company produces and sells automobile batteries, the heavy-duty HD-240. The 2022 sales forecast is as follows.

Quarter		HD-240
1		5,300
2		7,420
3		8,480
4		10,600

The January 1, 2022, inventory of HD-240 is 2,120 units. Management desires an ending inventory each quarter equal to 40% of the next quarters sales. Sales in the first quarter of 2023 are expected to be 25% higher than sales in the same quarter in 2022. Prepare quarterly production budgets for each quarter and in total for 2022.

3. Oriole Industries has adopted the following production budget for the first 4 months of 2022.

Month		Units		Month		Units
January		8,800		March		4,400
February		7,040		April		3,520

Each unit requires 2 pounds of raw materials costing $3 per pound. On December 31, 2021, the ending raw materials inventory was 3,520 pounds. Management wants to have a raw materials inventory at the end of the month equal to 20% of next months production requirements. Prepare a direct materials purchases budget by month for the first quarter.