Jo, John and Jack are three generations of the one family involved for nearly 50 years in providing legal services. The firm is preparing its fees budget for the year ending 30 June 2025. It budgets on a quarterly basis in a manner similar to figure 23.5. Jo is the most senior member of the family and estimates that she will bill clients for 40 hours per week and have 2 weeks annual leave during January. John is Jo’s son and intends to take 4 weeks leave during June and to bill clients for 38 hours per week. Jo’s grandson, Jack, is new to the firm and enjoys fishing on Friday afternoons and so usually bills clients for only 36 hours per week. Jack intends to take 2 weeks leave beginning in July.

The charge-out rates per hour for each family member are as follows.

Required Prepare the income budget for the business for the year ending 30 June 2025, showing projected dollar service revenues by quarter as per the statement of financial performance. Assume there are 13 weeks in each of the four quarters of the year ending 30 June 2025

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Jo $455 per hour John $310 per hour Jack $250 per hour