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, 20Y7: 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, 20Y7. Rollins and Cohen, CPAs Professional Labor Cost Budget For the Year Ending December 31, 20Y7 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 $ $
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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, 20Y7:
| 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, 20Y7.
| Rollins and Cohen, CPAs | ||
| Professional Labor Cost Budget | ||
| For the Year Ending December 31, 20Y7 | ||
| 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 | $ | $ |
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