Professional Labor Cost Budget for a Service Company

Rollins and Cohen, 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, 20Y8:

		Billable Hours
Audit Department:
	Staff	38,200
	Partners	5,700
Tax Department:
	Staff	27,900
	Partners	3,500
Small Business Accounting Department:
	Staff	4,600
	Partners	600

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 Rollins and Cohen, CPAs, for the year ending December 31, 20Y8.

Rollins and Cohen, CPAs
Professional Labor Cost Budget
For the Year Ending December 31, 20Y8
	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	$	$