Henry and Jones, partners in a sports management consulting firm, budgeted the following professional labor hours for
Question:
Henry and Jones, partners in a sports management consulting firm, budgeted the following professional labor hours for the year ended December 31, 20--:
Partners................................................... 4,000
Associates............................................... 7,000
Staff....................................................... 11,000
Partners have a billing rate of $200 per hour and actually earn $100 per hour. Associates bill out at $120 per hour and earn $60 per hour. Staff has a billing rate of $80 an hour and earns $40 per hour.
Budgeted overhead and other expenses are as follows:
Overhead:
Depreciation—Equipment................ $ 40,000
Depreciation—Building.................... 90,000
Fringe Benefits................................. 190,000
Photocopying.................................... 22,000
Secretarial Support............................ 230,000
Telephone/Fax.................................. 31,000
Utilities............................................. 43,000
Other Direct Expenses:
Travel............................................... $ 54,000
Meals................................................ 18,000
Directions:
1. Using the schedule below, prepare a revenue budget for the year ended December 31, 20--.
2. Using the schedule below, prepare a professional labor budget for the year ended December 31, 20--.
3. Using the schedule below, prepare an overhead budget for the year ended December 31, 20--.
4. Using the schedule below, prepare an other direct expenses budget for the year ended December 31, 20--.
5. Using the schedule below, prepare a budgeted income statement for the year ended December 31, 20--.
Financial Accounting: A Business Process Approach
ISBN: 978-0136115274
3rd edition
Authors: Jane L. Reimers