Quarter 1 Quarter 2 Quarter 3 Quarter 4 GARZA AND NEELY, CPAs Sales Revenue Budg
ID: 2378447 • Letter: Q
Question
Quarter 1 Quarter 2 Quarter 3 Quarter 4 GARZA AND NEELY, CPAsSales Revenue Budget
For the Year Ending December 31, 2012 Quarter 1 Quarter 2 Dept. Billable Hours Billable Rate Total Rev. Billable Hours Billable Rate Total Rev. Auditing Tax GARZA AND NEELY, CPAs
Sales Revenue Budget
For the Year Ending December 31, 2012 Quarter 3 Quarter 4 Dept. Billable Hours Billable Rate Total Rev. Billable Hours Billable Rate Total Rev. GARZA AND NEELY, CPAs
Sales Revenue Budget
For the Year Ending December 31, 2012 Year Dept. Billable Hours Billable Rate Total Rev. Auditing Tax Consulting Exercise 20-3 Garza and Neely, CPAs, are preparing their service revenue (sales) budget for the coming year (2012). The practice is divided into three departments: auditing, tax, and consulting. Billable hours for each department, by quarter, are provided below. Average hourly billing rates are: auditing $83, tax $92, and consulting $103. Prepare the service revenue (sales) budget for 2012 by listing the departments and showing for each quarter and the year in total, billable hours, billable rate, and total revenue.
Explanation / Answer
Garza and Neely, CPAs, are preparing their service revenue (sales) budget for the coming year (2012). 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 2,200 1,600 2,000 2,400
Tax 3,000 2,400 2,000 2,500
Consulting 1,500 1,500 1,500 1,500
Average hourly billing rates are: auditing $80, tax $90, and consulting $100.
Instructions
Prepare the service revenue (sales) budget for 2012 by listing the departments and showing for each quarter and the year in total, billable hours, billable rate, and total revenue.
Department:
Quarter 1:
Auditing: 2,200 Billing Hours x $80 Billing Rate= $176,000
Tax: 3,000 x $90 = $270,000
Consulting 1,500 x $100 = $150,000
Total Revenue: $596,000
Quarter 2:
1,600 x $80 = 128,000
2400 x $90 = 216,000
1500 x 100 = 150,000
Total Revenue: 494,000
Quarter 3:
2,000 x 80 = 160,000
2,000 x 90 = 180,000
1500 x 100 = 150,000
Total Revenue: $490,000
Quarter 4:
2,400 x 80 = 192,000
2,500 x 90 = 225,000
1500 x 100 = 150,000
Total Revenue: $567,000
Department:
8,200 x 80 = 656,000
9,900 x 90 = 891,000
6,000 x 100 = 600,000
Total Revenue = $2,147,000