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 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Auditing 2,300 1,600 2,000 2,400 Tax 3,000 2,200 2,000 2,500 Consulting 1,500 1,500 1,500 1,500 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. Prepare quarterly production budgets.
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
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Auditing
2,300
1,600
2,000
2,400
Tax
3,000
2,200
2,000
2,500
Consulting
1,500
1,500
1,500
1,500
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.
Prepare quarterly production budgets.
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