Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Professional Labor Cost Budget for a Service Company Roberts and Chou, CPAs, offer three types of services to clients: auditing, tax, and small business accounting.
Professional Labor Cost Budget for a Service Company
Roberts and Chou, 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 December 31, 2016:
Billable Hours | |||
Audit Department: | |||
Staff | 28,300 | ||
Partners | 4,200 | ||
Tax Department: | |||
Staff | 20,900 | ||
Partners | 2,600 | ||
Small Business Accounting Department: | |||
Staff | 3,700 | ||
Partners | 500 |
Based on the data provided above and assuming that the average compensation per hour for staff is $40 and for partners is $135, prepare a professional labor cost budget for each department for Roberts and Chou, CPAs, for the year ending December 31, 2016.
Roberts and Chou, CPAs | ||
Professional Labor Cost Budget | ||
For the Year Ending December 31, 2016 | ||
Staff | Partners | |
Audit department hours | ||
Tax department hours | ||
Small business accounting department hours | ||
Total hours | ||
Average compensation per hour | x $ | x $ |
Total professional labor cost | $ | $ |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started