Selcombe, Selcombe and Selcombe Media are three generations of the one family involved in providing public relations services for nearly 50 years. The firm is preparing its fees budget for the year ending 30 June 2017. It budgets on a quarterly basis in a manner similar to figure 12.5 (p. 000). Craig Selcombe is the most senior member of the family and estimates that he will bill clients for 40 hours per week and have 2 weeks annual leave during January. Alexander Selcombe is Craig’s son and intends to take 4 weeks leave during June and to bill clients for 38 hours per week. Craig’s grandson, Samuel, is new to the firm and enjoys fishing on Friday afternoons and so usually bills clients for only 36 hours per week. Samuel intends to take 2 weeks leave beginning in July.

The charge-out rates per hour for each of the Selcombes are as follows:

Craig                       $375 per hour

Alexander            $285 per hour

Samuel                 $185 per hour

Required

Prepare the income budget for Selcombe, Selcombe and Selcombe Media for the year ending 30 June 2017, showing projected dollar service revenues by quarter as per the income statement. Assume there are 13 weeks in each of the four quarters of the year ending 30 June 2017.