Question

Roberts and Chou, CPAs, offer three types of services to clients: auditing, tax, and small business...

  1. Roberts and Chou, CPAs, offer three types of services to clients: auditing, tax, and small business accounting. Based on experience and projected growth, the following billable hours have been estimated for the year ending December 31, 2016:

    Billable Hours
    Audit Department:
    Staff 26,800
    Partners 4,000
    Tax Department:
    Staff 20,600
    Partners 2,600
    Small Business Accounting Department:
    Staff 3,200
    Partners 400

    The average billing rate for staff is $130 per hour, and the average billing rate for partners is $250 per hour.

    Prepare a professional fees earned budget for Roberts and Chou, CPAs, for the year ending December 31, 2016.

    Roberts and Chou, CPAs
    Professional Fees Earned Budget
    For the Year Ending December 31, 2016
    Billable Hours Hourly Rate Total Revenue
    Audit Department:
    Staff $ $
    Partners
    Total $
    Tax Department:
    Staff $ $
    Partners
    Total $
    Small Business Accounting Department:
    Staff $ $
    Partners
    Total $
    Total professional fees earned $

Homework Answers

Answer #1

Prepare a professional fees earned budget for Roberts and Chou, CPAs, for the year ending December 31, 2016.

Billable hours Hourly rate Total revenue
Audit department
Staff 26800 130 3484000
Partners 4000 250 1000000
Total 4484000
Tax Department:
Staff 20600 130 2678000
Partners 2600 250 650000
Total 3328000
Small Business Accounting Department:
Staff 3200 130 416000
Partners 400 250 100000
Total 516000
Total professional fees earned 8328000
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