Exercise 9-3 Crede and Rensing, CPAs, are preparing their service revenue (sales) budget for the coming year (2011). 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 2,200 1,600 2,000 2,400 Tax 3,000 2,400 2,000 2,500 Consulting 1,500 1,500 1,500 1,500 Average hourly billing rates are: auditing $80, tax $90, and consulting $100. Instructions Prepare the service revenue (sales) budget for 2011 by listing the departments and showing for each quarter and the year in total, billable hours, billable rate, and total revenue. Exercise 9-4 Pletcher Company produces and sell automobile batteries, the heavy-duty HD-24. The 2011 sales forecast is as follows. Quarter HD-240 1 5,000 2 7,000 3 8,000 4 10,000 The January 1, 2011, inventory of DH-240is 2,500 units. Management desires an ending inventory each quarter equal to 50% of the next quarters sales. Sales in the first quarter of 2012 are expected to be 30% higher than sales in the same quarter in 2011. Instructions Prepare quarterly production budgets for each quarter and in total for 2011