Preparing a revenue budget and a labor budget for a service business
Lynn and Paul, partners in a systems consulting firm, budgeted the following professional labor hours for the year ended December 31, 2008:
|
Partners |
4,000 |
|
Associates |
14,000 |
|
Staff |
22,000 |
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 has a billing rate of $95 per hour and earns $55 per hour.
Required:
1. Prepare a revenue budget
2. Prepare a professional labor budget