Exercise 21-3 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 |
2,330 |
1,870 |
2,120 |
2,730 |
| Tax |
3,150 |
2,660 |
2,330 |
2,790 |
| Consulting |
1,830 |
1,830 |
1,830 |
1,830 |
Average hourly billing rates are auditing $81, tax $91, and consulting $104.
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.