Kentford Associates is a small professional services firm. Last month, Kentford billed more hours than expected and profits reflected this.

	Reported Income Statement	Master Budget
Billable hoursa	5,809	5,404
Revenue	$ 1,132,000	$ 1,088,000
Professional salaries (all variable)	524,000	502,000
Other variable costs (e.g., supplies, computer services)	158,400	142,000
Fixed costs	260,000	277,000
Profit	$ 189,600	$ 167,000

^aThese are hours billed to clients. They are fewer than the number of hours worked because there is nonbillable time (e.g., slack periods, time in training sessions) and because some time worked for clients is not charged to them.

Required:

Prepare a flexible budget for Kentford. Use billable hours as the measure of output (that is, units produced).