Questions:
Preparing a revenue budget and a labor budget for a service business
Matthews and Thomas, partners in a systems consulting firm, budgeted the following professional labor hours for the year ended December 31, 2011:
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Partners
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4,000
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Associates
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14,000
|
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Staff
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22,000
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Partners have a billing rate of $225 per hour and actually earn $110 per hour. Associates bill out at $140 per hour and earn $85 per hour. Staff bill out at a rate of $75 per hour and earn $35 per hour.
Required:
1. Prepare a revenue budget.
2. Prepare a professional labor budget.