Question

Professional Fees Earned Budget for a Service Company Rollins and Cohen, CPAs, offer three types of services to clients: auditing, tax, and small business accounting. Based on experience and projected growth, the following billable hours have been estimated for the year ending December 31, 2048: Billable Hours Audit Department: Staff 32,100 Partners 4,800 raw ON OF Tax Department: Staff ololo 24,100 3,000 Partners Small Business Accounting Department: Staff 4,500 Partners 600 The average billing rate for staff is $130 per hour, and the average billing rate for partners is $250 per hour. Prepare a professional fees earned budget for Rollins and Cohen, CPAs, for the year ending December 31, 20Y8. Rollins and Cohen, CPAs Professional Fees Earned Budget For the Year Ending December 31, 2018

Answer 1

Professional fees earned budget

For the year ended December 31,2020

	Billable hours	Hourly rate	Total revenue
Audit department
Staff	32100	130	4173000
Partners	4800	250	1200000
Total	36900		5373000
Tax department
Staff	24100	130	3133000
Partners	3000	250	750000
Total	27100		3883000
Small business accounting department
Staff	4500	130	585000
Partners	600	250	150000
Total	5100		735000
Total professional fees earned			9991000