Hebert & co. cpa’s anticipates that partners will bill 1,000 professional hours, managers will bill 7,500 professional hours and staff accountants will bill 25,000 professional hours. billing rates are $250, $150 and $75 for partners, managers and staff accountants, respectively. what is hebert & co.’s budgeted revenue?

$3,250,000

Explanation:

Data provided in the question:

Partners Professional hours = 1,000

managers = 7,500 professional hours

staff accountants =  25,000 professional hours

Billing rates :

For Partners = $250

For managers = $150

For staff accountants = $75

Now,

True budgeted revenue

= ∑ (Respective professional hours × respective rates )

= ( 1,000 × $250 ) + ( 7,500 × $150 ) + ( 25,000 × $75 )

= $250,000 + $1,125,000 + $1,875,000

= $3,250,000

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