Question
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.
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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 37,400 Partners 5,600 Tax Department: Staff 28,400 Partners 3,600 Small Business Accounting Department: Staff 4,900 Partners 700
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 $ $
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 | 37,400 | ||
| Partners | 5,600 | ||
| Tax Department: | |||
| Staff | 28,400 | ||
| Partners | 3,600 | ||
| Small Business Accounting Department: | |||
| Staff | 4,900 | ||
| Partners | 700 | ||
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 | $ | $ |
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