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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.

Respuesta :

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

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