ACC 560 MART Start With a Dream /acc560mart.com ACC 560 MART Start With a Dream /acc560mart.com | Page 43

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
1.
2017. Prepare a production budget for January and February
2. Prepare a direct materials budget for January 2017.
Prepare a direct labor budget.