Question

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			$

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