Objective: Preparing the revenue budget, professional labor budget, overhead budget, other expenses budget, and budgeted income statement.

Information

Henry and Jones, partners in a sports management consulting firm, budgeted the following professional labor hours for the year ended December 31, 20--:

Partners................................................... 4,000

Associates............................................... 7,000

Staff....................................................... 11,000

Partners have a billing rate of $200 per hour and actually earn $100 per hour. Associates bill out at $120 per hour and earn $60 per hour. Staff has a billing rate of $80 an hour and earns $40 per hour.

Budgeted overhead and other expenses are as follows:

Overhead:

DepreciationEquipment................ $40,000

DepreciationBuilding.................... 90,000

Fringe Benefits................................. 190,000

Photocopying.................................... 22,000

Secretarial Support............................ 230,000

Telephone/Fax.................................. 31,000

Utilities............................................. 43,000

Other Direct Expenses:

Travel............................................... $54,000

Meals................................................ 18,000

Directions:

1. Using the schedule below, prepare a revenue budget for the year ended December 31, 20--.

Henry and Jones

Revenue Budget

For the Year Ended December 31, 20--

Item	Professional Hours	Billing Rate	Total Revenues
Partners.......................		$	$
Associates...................
Staff...........................
Total........................			$

2. Using the schedule below, prepare a professional labor budget for the year ended December 31, 20--.

Henry and Jones

Professional Labor Budget

For the Year Ended December 31, 20--

Item	Professional Hours	Wage Rate	Total Labor Dollars
Partners.......................		$	$
Associates...................
Staff...........................
Total........................			$

3. Using the schedule below, prepare an overhead budget for the year ended December 31, 20--.

Henry and Jones

Overhead Budget

For the Year Ended December 31, 20--

Item	Amount
Secretarial Support........................................................	$
Fringe Benefits.............................................................
DepreciationBuilding................................................
Utilities.........................................................................
DepreciationEquipment............................................
Telephone/Fax..............................................................
Photocopying................................................................
Total..........................................................................	$

4. Using the schedule below, prepare an other direct expenses budget for the year ended December 31, 20--.

Henry and Jones

Other Direct Expenses Budget

For the Year Ended December 31, 20--

Item	Amount
Travel...........................................................................	$
Meals............................................................................
Total..........................................................................	$

5. Using the schedule below, prepare a budgeted income statement for the year ended December 31, 20--.

Henry and Jones

Budgeted Income Statement

For the Year Ended December 31, 20--

Revenues......................................................................	$
Operating Costs:
Professional Labor...................... $
Overhead Support.......................
Other Direct Expenses................
Operating Income.........................................................	$