E9-3
Thome and Crede, CPAs, are preparing their service revenue( sales) budget for the coming year( 2017). 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 2,300 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 2017 by listing the departments and showing for each quarter and the year in total, billable hours, billable rate, and total revenue.
Prepare quarterly production budgets.
E9-8
Fuqua Company ' s sales budget projects unit sales of part 198Z of 10,000 units in January, 12,000 units in February, and 13,000 units in March. Each unit of part 198Z requires 4 pounds of materials, which cost $ 2 per pound. Fuqua Company desires its ending raw materials inventory to equal 40 % of the next month ' s production requirements, and its ending finished goods inventory to equal 20 % of the next