3.Domino Consulting has two departments, Information Technology Consulting and General : 1416279
3.Domino Consulting has two departments, Information Technology Consulting and General Business Consulting. The firm has Partners, Senior Consultants and Junior Consultants in each department. The firm is preparing its budgets for the upcoming year.
The controller received the following information from the marketing department about anticipated demand for the firm’s products in the upcoming year:
Department:Total Professional Hours:
The controller then worked with the human resources department to determine the following information about staffing and salary rates for each department:
Information TechnologyGeneral Business
Ratio of partner hours: senior consultant hours: junior consultant hours
Salary Rates per hour:
The controller has also determined that in order to be profitable, billing rates should be three times the amount paid to employees. The marketing department has determined that billing rates computed on that basis are comparable to what other consulting firms charge.
(a)Prepare a revenue budget for Domino Consulting Company.
(b)Prepare a labor budget for Domino Consulting Company.
4.Frederick and Ivey, CPA have the following budgeted items for the month of July:
Depreciation - equipment$2,500
Professional salaries (from budget)10,000
Professional dues and subscriptions1,500
Revenues (from budget)35,000
Prepare a budgeted income statement for the month of July.