Thome and Crede, CPAS, are preparing their service revenue (sales) budget for the coming year (2020). The practice is divided into three departments: auditing, tax, and consulting. Billable hours for each department, by quarter, are provided below. Department Quarter 1 Quarter 2 Quarter 3 Quarter 4 Auditing 2,530 1,850 2,320 2,740 Tax 3, 250 2,680 2,140 2,690 Consulting 1,770 1,770 1,770 1,770 Average hourly billing rates are auditing $83, tax $94, and consulting $102. Prepare the service revenue (sales) budget for 2020 by listing the departments and showing for each quarter and the year in total, billable hours, billable rate, and total revenue. THOME AND CREDE, CPAS Service Revenue Budget choose the accounting period For the Quarter Ending December 31, 2020 Quarter 1 Quarter 2 Dept. Billable Hours Billable Rate Total Rev. Billable Hours Billable Rate Total Rev. Auditing enter a number of hours 2530 Senter a dollar amount 83 Senter a dollar amount 209990 enter a number of hours 1850 Senter a dollar amount 83 Senter a dollar amount 153550 Tax enter a number of hours 3250 enter a dollar amount 94 enter a dollar amount 305500 enter a number of hours 2680 enter a dollar amount 94 enter a dollar amount 251920 Consulting enter a number of hours 1770 enter a dollar amount 102 enter a dollar amount 180840 enter a number of hours 1770 enter a dollar amount 102 enter a dollar amount 180840 Totals Senter a total dollar amount 696330 Senter a total dollar amount 586310 THOME AND CREDE, CPAS Service Revenue Budget choose the accounting period For the Year Ending December 31, 2020 Quarter 3 Quarter 4 Dept. Billable Hours Billable Rate Total Rev. Billable Hours Billable Rate Total Rev. Auditing enter a number of hours Senter a dollar amount Senter a dollar amount enter a number of hours Senter a dollar amount Senter a dollar amount Tax enter a number of hours enter a dollar amount enter a dollar amount enter a number of hours enter a dollar amount enter a dollar amount Consulting enter a number of hours enter a dollar amount enter a dollar amount enter a number of hours enter a dollar amount enter a dollar amount Totals Senter a total dollar amount Senter a total dollar amount THOME AND CREDE, CPAS Service Revenue Budget choose the accounting period Year Dept. Billable Hours Billable Rate Total Rev. Auditing enter a number of hours Senter a dollar amount Senter a dollar amount Tax enter a number of hours enter a dollar amount enter a dollar amount Consulting enter number of hours enter a dollar amount enter a dollar amount Totals Senter a total dollar amount
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.
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