Question
Thome and Crede, CPAs, are preparing their service revenue (sales) budget for the coming year (2020). The practice is divided into three departments: auditing, tax,
Thome and Crede, CPAs, are preparing their service revenue (sales) budget for the coming year (2020). The practice is divided into three departments: auditing, tax, and consulting. Billable hours for each department, by quarter, are provided below.
Department | Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | ||||
---|---|---|---|---|---|---|---|---|
Auditing | 2,480 | 1,920 | 2,300 | 2,570 | ||||
Tax | 3,170 | 2,510 | 2,300 | 2,640 | ||||
Consulting | 1,890 | 1,890 | 1,890 | 1,890 |
Average hourly billing rates are auditing $81, tax $93, and consulting $102. Prepare the service revenue (sales) budget for 2020 by listing the departments and showing for each quarter and the year in total, billable hours, billable rate, and total revenue.
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