E9.23 Professional services budget: dental practice

Central Dental Associates is a large dental practice in Brisbane. The firm's accountant is preparing the budget for next year. He projects a total of 48 000 patient visits throughout the year, of which6 000 will be in May and 8 000 in June. Eighty per cent of the visits will be half-hour appointments, and the remainder will be one-hour visits. The average fees charged to patients for professional dental services are $160 for half-hour appointments and $280 for one-hour visits. ninety per cent of each month's professional service revenue is collected during the month when services are rendered, and the remainder is collected the month following service. Uncollectable billings are negligible. Central Dental's dentists are paid $200 per hour.

Required:

1. what is the direct labour budget for May and June, which includes total direct professional labour hours and costs.

2. Estimate the budgeted cash receipts for June.