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Posted: May 21st, 2023
Kimble and Sanchez, CPAs, offer three types of services
Kimble and Sanchez, 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, 2008:Billable HoursAudit Department:Staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,500Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,200Tax Department:Staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,700Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,150Small Business Accounting Department:Staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,800Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,300The average billing rate for staff is $120 per hour, and the average billing rate for partners is $240 per hour. Prepare a professional fees earned budget for Kimble and Sanchez, CPAs, for the year ending December 31, 2008, using the following column headings and showing the estimated professional fees by type of service rendered:Billable Hours Hourly Rate Total Revenue
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