E9.3 (LO 2), AP Service Service Thome and Crede, CPAs, are preparing their service revenue (sales) budget for the coming year(2022). The practice is divided into three departments: auditing, tax, and consulting. Billable hours for each department, by quarter, areprovided here.DepartmentAuditingTaxQuarter 12,3003,0001,500Quarter 21,6002,2001,500Quarter 32,0002,0001,500Quarter 42,4002,5001,500ConsultingAverage hourly billing rates are auditing $80, tax $90, and consulting $110.InstructionsPrepare the service revenue (sales) budget for 2022 by listing the departments and showing billable hours, billable rate, and total revenuefor each quarter and the year in total.

Answered: E9.3 (LO 2), AP Service Service Thome…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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E9.3 (LO 2), AP Service Service Thome and Crede, CPAs, are preparing their service revenue (sales) budget for the coming year
(2022). The practice is divided into three departments: auditing, tax, and consulting. Billable hours for each department, by quarter, are
provided here.
Department
Auditing
Tax
Quarter 1
2,300
3,000
1,500
Quarter 2
1,600
2,200
1,500
Quarter 3
2,000
2,000
1,500
Quarter 4
2,400
2,500
1,500
Consulting
Average hourly billing rates are auditing $80, tax $90, and consulting $110.
Instructions
Prepare the service revenue (sales) budget for 2022 by listing the departments and showing billable hours, billable rate, and total revenue
for each quarter and the year in total.

Expert Solution

Step 1

A spending plan based on income and costs is called a budget. In other words, it's a projection of your income and expenses for a specific time frame, like a month or a year. Or, if you're keeping track of the money coming in and going out of your home as a whole, that's a family budget. Making a detailed list of expenses or concentrating on a few areas may both be part of budgeting. While some individuals prefer to use a spreadsheet or budgeting tool, others prefer to write out their budgets by hand. Budgeting is not an exact science; what works for one person undoubtedly may not work for another.

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