Question

Professional Fees Earned Budget for a Service Company

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	42,600
	Partners	6,400
Tax Department:
	Staff	32,400
	Partners	4,100
Small Business Accounting Department:
	Staff	6,000
	Partners	800

The average billing rate for staff is $135 per hour, and the average billing rate for partners is $255 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

Roberts and Chou, CPAs
Professional Fees Earned Budget
For the Year Ending December 31, 2016
	Billable Hours	Hourly Rate	Total Revenue
Audit Department:
Staff	42600	135	5751000
Partners	6400	255	1632000
Total			7383000
Tax Department:
Staff	32400	135	4374000
Partners	4100	255	1045500
Total			5419500
Small Business Accounting Department:
Staff	6000	135	810000
Partners	800	255	204000
Total			1014000
Total professional fees earned			13816500