Question

# Professional Labor Cost Budget for a Service Company Rollins and Cohen, CPAs, offer three types of...

Professional Labor Cost Budget for a Service Company Rollins and Cohen, 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, 20Y8: Billable Hours Audit Department: Staff 22,400 Partners 7,900 Tax Department: Staff 13,200 Partners 5,500 Small Business Accounting Department: Staff 3,000 Partners 600 Based on the data provided above and assuming that the average compensation per hour for staff is $45 and for partners is$140, prepare a professional labor cost budget for each department for Rollins and Cohen, CPAs, for the year ending December 31, 20Y8. Rollins and Cohen, CPAs Professional Labor Cost Budget For the Year Ending December 31, 20Y8 Staff Partners Audit Department hours Tax Department hours Small Business Accounting Department hours Total hours Average compensation per hour x $x$ Total professional labor cost 

Hello,

The above question is simple. Refer the table below for the answer:

 Sr. No. Department Billable Hours Compensation per Hour Total Cost Average Rate Dept wise Staff Partners Staff Partners Staff Partners Total (a) (b) (c) (d) (e) = (a) * (c) (f) = (b) * (d) (g) = (e) + (f) (g) / ((a)+(b)) 1 Audit 22400 7900 45 140 10,08,000 11,06,000 21,14,000 69.77 2 Tax 13200 5500 45 140 5,94,000 7,70,000 13,64,000 72.94 3 Small Business A/cng 3000 600 45 140 1,35,000 84,000 2,19,000 60.83 Total 38600 14000 17,37,000 19,60,000 36,97,000

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