Exercises 303 d Crede CPAs are preparing their service reven

Exercises 303 d Crede, CPAs, are preparing their service revenue (sales) budget for the 2017). The practice is divided into three departments: auditing, tax, E9-3 Thome and Crede, CPAs, are E9-3 Thome ( Prepare a sales budge for Billable hours for each department, by quarter, are provided below. (LO 2), AP Quarter 1 2,300 3,000 1,500 Quarter 2Quarter 3 Department Auditing Tax Consulting 1,600 2,200 1,500 2,000 2,000 1,500 Quarter 4 2,400 2,500 1,500 Average hourly billing rates are auditing $80, tax $90, and consulting $110. Instructions Prepare the service revenue (sales) budget for 2017 by listing the departments and show ing for each quarter and the year in total, billable hours, billable rate, and total revenue

Solution

Service Revenue Budget for 2017

Particulars

A

B

C=A*B

D

E

F=D*E

G

H

I=G*H

J

K

L=J*K

A+D+G+J

C+F+I+L

Department

Quarter 1 HOUR WORKED

Rate/ billable hour

Quarter 1 SERVICE REVENUE ($)

Quarter 2 HOUR WORKED

Rate/ billable hour

Quarter 2 SERVICE REVENUE ($)

Quarter 3 HOUR WORKED

Rate/ billable hour

Quarter 3 SERVICE REVENUE ($)

Quarter 4 HOUR WORKED

Rate/ billable hour

Quarter 4 SERVICE REVENUE ($)

Year total billable hours

Year total service revenue($)

Auditing

2300

80

184000

1600

80

128000

2000

80

160000

2400

80

192000

8300

664000

Tax

3000

90

270000

2200

90

198000

2000

90

180000

2500

90

225000

9700

873000

Consulting

1500

110

165000

1500

110

165000

1500

110

165000

1500

110

165000

6000

660000

Quarter wise total

6800

280

619000

5300

280

491000

5500

280

505000

6400

280

582000

24000

2197000

Service Revenue Budget for 2017
Particulars	A	B	C=A*B	D	E	F=D*E	G	H	I=G*H	J	K	L=J*K	A+D+G+J	C+F+I+L
Department	Quarter 1 HOUR WORKED	Rate/ billable hour	Quarter 1 SERVICE REVENUE ($)	Quarter 2 HOUR WORKED	Rate/ billable hour	Quarter 2 SERVICE REVENUE ($)	Quarter 3 HOUR WORKED	Rate/ billable hour	Quarter 3 SERVICE REVENUE ($)	Quarter 4 HOUR WORKED	Rate/ billable hour	Quarter 4 SERVICE REVENUE ($)	Year total billable hours	Year total service revenue($)
Auditing	2300	80	184000	1600	80	128000	2000	80	160000	2400	80	192000	8300	664000
Tax	3000	90	270000	2200	90	198000	2000	90	180000	2500	90	225000	9700	873000
Consulting	1500	110	165000	1500	110	165000	1500	110	165000	1500	110	165000	6000	660000
Quarter wise total	6800	280	619000	5300	280	491000	5500	280	505000	6400	280	582000	24000	2197000