Question

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
Auditing		2,460		1,870		2,320		2,660
Tax		3,150		2,750		2,340		2,620
Consulting		1,890		1,890		1,890		1,890

Average hourly billing rates are auditing $85, tax $91, and consulting $101.

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.

THOME AND CREDE, CPAs Service Revenue Budget choose the accounting period December 31, 2020For the Quarter Ending December 31, 2020For the Year Ending December 31, 2020
	Quarter 1			Quarter 2
Dept.	Billable Hours	Billable Rate	Total Rev.	Billable Hours	Billable Rate	Total Rev.
Auditing	enter a number of hours	$enter a dollar amount	$enter a dollar amount	enter a number of hours	$enter a dollar amount	$enter a dollar amount
Tax	enter a number of hours	enter a dollar amount	enter a dollar amount	enter a number of hours	enter a dollar amount	enter a dollar amount
Consulting	enter a number of hours	enter a dollar amount	enter a dollar amount	enter a number of hours	enter a dollar amount	enter a dollar amount
Totals			$enter a total amount			$enter a total amount

THOME AND CREDE, CPAs Service Revenue Budget choose the accounting period For the Year Ending December 31, 2020December 31, 2020For the Quarter Ending December 31, 2020
Quarter 3				Quarter 4
Dept.	Billable Hours	Billable Rate	Total Rev.	Billable Hours	Billable Rate	Total Rev.
Auditing	enter a number of hours	$enter a dollar amount	$enter a dollar amount	enter a number of hours	$enter a dollar amount	$enter a dollar amount
Tax	enter a number of hours	enter a dollar amount	enter a dollar amount	enter a number of hours	enter a dollar amount	enter a dollar amount
Consulting	enter a number of hours	enter a dollar amount	enter a dollar amount	enter a number of hours	enter a dollar amount	enter a dollar amount
Totals			$enter a total amount			$enter a total amount

THOME AND CREDE, CPAs Service Revenue Budget choose the accounting period For the Year Ending December 31, 2020December 31, 2020For the Quarter Ending December 31, 2020
Year
Dept.	Billable Hours	Billable Rate	Total Rev.
Auditing	enter a number of hours	$enter a dollar amount	$enter a dollar amount
Tax	enter a number of hours	enter a dollar amount	enter a dollar amount
Consulting	enter a number of hours	enter a dollar amount	enter a dollar amount
Totals			$enter a total amount

Answer 1

• Requirement

Sales Revenue Budget
For the Year Ending December 31, 2020
	Quarter 1			Quarter 2			Quarter 3			Quarter 4			Year
Dept.	Billable Hours	Billable Rate	Total Rev.	Billable Hours	Billable Rate	Total Rev.	Billable Hours	Billable Rate	Total Rev.	Billable Hours	Billable Rate	Total Rev.	Billable Hours	Billable Rate	Total Rev.
Auditing	2460	$85	$209,100	1870	$85	$158,950	2320	$85	$197,200	2660	$85	$226,100	9310	$85	$791,350
Tax	3150	$91	$286,650	2750	$91	$250,250	2340	$91	$212,940	2620	$91	$238,420	10860	$91	$988,260
Consulting	1890	$101	$190,890	1890	$101	$190,890	1890	$101	$190,890	1890	$101	$190,890	7560	$101	$763,560
TOTAL			$686,640			$600,090			$601,030			$655,410			$2,543,170