1. 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	$	$