Based on the data in Exercise 22-7 and assuming that the average compensation per hour for staff is $45 and for partners is $140

Based on the data in Exercise 22-7 and assuming that the average compensation per hour for staff is $45 and for partners is $140, prepare a professional labor cost budget for each department for Rollins and Cohen, CPAs, for the year ending December 31, 2014. Use the following column headings:






Staff Partners


Answer:














ROLLINS AND COHEN, CPAs
Professional Labor Cost Budget
For the Year Ending December 31, 2014
Staff Partners
Audit Department hours 22,400 7,900
Tax Department hours 13,200 5,500
Small Business Accounting Department hours 3,000 600
Total hours 38,600 14,000
Average compensation per hour × $45 × $140
Total professional labor cost $1,737,000 $1,960,000