Exercise 1342 (Algo) Budgeting in a Service Organization (LO 13-6, 7) Executive Solutions is a strategy consulting firm. Other than the senior leadership (who manage the firm, but do not actively consule). the managers and staff are billed to cllents on an hourly basis. The workload varies quite a bit from month to month requiring careful planning. Managers are billed to clients at a rate of $1,060 per hour and staff at a rate of $530 per hour. Managers are paid $385 per hour worked (including nonbillable time) and staff are paid $205 per hour. The current plan calls for managers to bill 1,360 hours in May and 910 hours in June. Staff are expected to bill 6,720 hours in May and 4,820 hours in June. Managers will work a total of 2,720 hours in both months and staff will work a total of 9,920 hours in both months. Other monthly costs (all fixed) are $558,000 SG\&A, $233,000 in depreciation, and $358,000 in marketing. Required: Prepare a budgeted income statement for Executive Solutions for May and June (separately)