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Question 1your Answer Is Partially Correct Try Againgarza And Neely
Garza and Neely, CPAs, are preparing their service revenue (sales) budget for 2012. The practice is divided into three departments: auditing, tax, and consulting. Billable hours for each department, by quarter, are provided below.
- Auditing: Quarter 1 - 2,750; Quarter 2 - 3,000; Quarter 3 - 2,850; Quarter 4 - 3,000
- Tax: Quarter 1 - 3,630; Quarter 2 - 3,580; Quarter 3 - 3,650; Quarter 4 - 3,700
- Consulting: Quarter 1 - 1,870; Quarter 2 - 1,950; Quarter 3 - 1,900; Quarter 4 - 2,050
Average hourly billing rates are: auditing $84, tax $93, and consulting $104. Prepare the service revenue (sales) budget for 2012 by listing the departments and showing for each quarter and the year in total, billable hours, billable rate, and total revenue.
Paper For Above instruction
Garza and Neely, CPAs, Service Revenue Budget for the Year Ending December 31, 2012
Quarterly Breakdown
| Department | Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 |
|---|---|---|---|---|
| Auditing |
Billable Hours: 2,750 Billable Rate: $84 Total Revenue: $231,000 |
Billable Hours: 3,000 Billable Rate: $84 Total Revenue: $252,000 |
Billable Hours: 2,850 Billable Rate: $84 Total Revenue: $239,400 |
Billable Hours: 3,000 Billable Rate: $84 Total Revenue: $252,000 |
| Tax |
Billable Hours: 3,630 Billable Rate: $93 Total Revenue: $337,590 |
Billable Hours: 3,580 Billable Rate: $93 Total Revenue: $333,540 |
Billable Hours: 3,650 Billable Rate: $93 Total Revenue: $339,450 |
Billable Hours: 3,700 Billable Rate: $93 Total Revenue: $344,100 |
| Consulting |
Billable Hours: 1,870 Billable Rate: $104 Total Revenue: $194,480 |
Billable Hours: 1,950 Billable Rate: $104 Total Revenue: $202,800 |
Billable Hours: 1,900 Billable Rate: $104 Total Revenue: $197,600 |
Billable Hours: 2,050 Billable Rate: $104 Total Revenue: $213,200 |
Annual Total
| Department | Billable Hours | Billable Rate | Total Revenue |
|---|---|---|---|
| Auditing | 11,400 | $84 | $954,800 |
| Tax | 14,510 | $93 | $1,346,680 |
| Consulting | 7,670 | $104 | $798,880 |
Thus, Garza and Neely's total projected revenues for 2012 across all departments amount to $3,100,360. This comprehensive forecast enables strategic planning for resource allocation and revenue expectations for the upcoming year.
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