3 The average billing rate for staff is $160 per hour, and the average billing rate for partners is $350 per hour. Prepare a professional fees earned budget for Elitz and Van Aken, CPAS, for the year ending December 31, 2020, using the following column headings and showing the estimated professional fees by type of service rendered and add additional rows in the table as needed: Billable Hours Hourly Rate Total Revenue
3 The average billing rate for staff is $160 per hour, and the average billing rate for partners is $350 per hour. Prepare a professional fees earned budget for Elitz and Van Aken, CPAS, for the year ending December 31, 2020, using the following column headings and showing the estimated professional fees by type of service rendered and add additional rows in the table as needed: Billable Hours Hourly Rate Total Revenue
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 2PA: Profit center responsibility reporting for a service company Red Line Railroad Inc. has three...
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Transcribed Image Text:### Service Offerings and Billable Hours Projection
Elitz and Van Aken, CPAs, provide three key services to clients: auditing, tax, and small business accounting. Based on their expertise and anticipated growth, they have estimated the following billable hours for the year ending December 31, 2020:
#### Estimated Billable Hours:
- **Audit Department:**
- Staff: 22,400 hours
- Partners: 7,900 hours
- **Tax Department:**
- Staff: 13,200 hours
- Partners: 5,500 hours
- **Small Business Accounting Department:**
- Staff: 3,000 hours
- Partners: 600 hours
#### Billing Rates:
- The average billing rate for staff is $160 per hour.
- The average billing rate for partners is $350 per hour.
To calculate the professional fees earned and prepare a budget for Elitz and Van Aken, CPAs, use the table below with the given column headings. Add more rows as necessary to display the estimated fees by the type of service provided.
| Billable Hours | Hourly Rate | Total Revenue |
|----------------|-------------|---------------|
Expert Solution
Step 1
ESTIMATED REVENUE
Estimated revenue is also known as Budgeted Revenue. Estimated revenue is a Revenue which is to be expected to generate in futre.
Computation of estimated revenue is same as preparation of Sales Budget.
Estimated Revenue is Computed :-
= Total Billable Hour * Hourly Rates
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