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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 month's expected unit
sales. These goals were met at December 31, 2016.
Instructions