Please solve this problem Exercise 21-3 Thome and Crede, CPAs, are preparing the
ID: 2563298 • Letter: P
Question
Please solve this problem
Exercise 21-3 Thome and Crede, CPAs, are preparing their service revenue (sales) budget for the coming year (2017). The practice is divided into three departments: auditing, tax, and consulting. Billable hours for each department, by quarter, are provided below Department Quarteri Quarter 2 Quarter 3 Auditing Tax Consulting 2,510 3,250 1,660 1,780 2,750 1,660 2,390 2,250 1,660 Quarter 4 2,760 2,630 1,660 Average hourly billing rates are auditing $83, tax $93, and consulting $105. Prepare the service revenue (sales) budget for 2017 by listing the departments and showing for each quarter and the year in total, billable hours, billable rate, and total revenue.Explanation / Answer
Sales revenue Budget For the year ended December 31,2017 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Dept. BillableHours BillableRate Total Rev. BillableHours BillableRate Total Rev. BillableHours BillableRate Total Rev. BillableHours BillableRate Total Rev. BillableHours BillableRate Total Rev. Auditing 2510 83 208330 1780 83 147740 2390 83 198370 2760 83 229080 9440 83 783520 Tax 3250 93 302250 2750 93 255750 2250 93 209250 2630 93 244590 10880 93 1011840 Consulting 1660 105 174300 1660 105 174300 1660 105 174300 1660 105 174300 6640 105 697200 Total 684880 577790 581920 647970 2492560