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
The average billing rate for staff is $150 per hour, and the average billing rate for partners is $320 per hour. Prepare a professional fees earned budget for Rollins and Cohen, CPAs, for the year ending December 31, 2014, using the following column headings and showing the estimated professional fees by type of service rendered:
Billable Hours Hourly Rate Total Revenue
Answer:
ROLLINS AND COHEN, CPAs
Professional Fees Earned Budget
For the Year Ending December 31, 2014
Billable
Hours
Hourly
Rate
Total
Revenue
Audit Department:
Staff 22,400 $150 $ 3,360,000
Partners 7,900 320 2,528,000
Total 30,300 $ 5,888,000
Tax Department:
Staff 13,200 $150 $ 1,980,000
Partners 5,500 320 1,760,000
Total 18,700 $ 3,740,000
Small Business Accounting Department:
Staff 3,000 $150 $ 450,000
Partners 600 320 192,000
Total 3,600 $ 642,000
Total professional fees earned $10,270,000