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 Auditing2,5401,9302,2002,740 Tax3,3302,5102,1102,780 Consulting1,7301,7301,7301,730 Average hourly billing rates are auditing $83, tax $95, and consulting $103. 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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Business

Armani Larson

24 September, 20:21

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 Auditing2,5401,9302,2002,740 Tax3,3302,5102,1102,780 Consulting1,7301,7301,7301,730 Average hourly billing rates are auditing $83, tax $95, and consulting $103. 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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Jermaine Ibarra · Answer 1

Answer and Explanation:

The presentation of the service revenue or sales budget is presented below:

According to the scenario, the preparation are as follow:-

Service Revenue Budget

Quarter 1 Quarter 2

a b a * b a b a * b

Particular Billable Hrs Billable Rate Total Revenue ($) Billable Hrs Billable Rate Total Revenue ($)

Auditing 2,540 $83 $210,820 1,930

$83 $160,190

Tax 3,330 $95 $316,350 2,510

$95 $238,450

Consulting 1,730 $103 $178,190 1,730

$103 $178,190

Total amount $705,360

$576,830

We simply multiplied the billable hours with the billable rate so that the total revenue could come for both quarters