Lepard Financial Services provides investment advice to individual and commercial clients. The following is the budgeted income statement for the year ended December 31, 2023:

Lepard Financial Services Ltd.

Budgeted Income Statement

For the Year Ended December 31, 2023

Professional fees	750,000
Fixed expenses
Salary - Lepard	84,000
Salary - Assistants	96,000
Supplies	20,000
Occupancy	120,000
Communications	20,000
Client relations	40,000
	380,000
Inc. before tax	370,000
Inc. tax expense	111,000
Net income	259,000

The firm’s staff consists of one financial advisor-owner (Lepard) and two assistants. Total annual budgeted hours for each employee is 2,000. The firm expects to complete 180 commercial files and 150 individual files during fiscal 2023.

Fees are based on time spent on each file by Lepard. Her hourly charge-out rate is $500. Average estimated hours to complete a commercial file is 5 hours by Lepard and 14 hours by an assistant. Average estimated hours to complete an individual file is 4 hours by Lepard and 6 hours by an assistant. The remaining hours will be used for other necessary (but unbillable) activities.

Type of fixed expense	Activity	Lepard	Assistants	Total
Supplies	Supplies used	20%	80%	100%
Occupancy	Space occupied (m2)	20	30	50
Communications	Contacts initiated	20	80	100
Client relations	Clients entertained	90	10	100

Required:

Using time-driven activity based costing, calculate the charge-out rates for Lepard and the assistants that will produce equal pre-tax profit percentages for each type of financial advising service. Use the following format:

	Commercal	Individual	Subtotal	Unalloc.	Total
Professional fees (a)
Lepard
Assistant
Fixed expenses
Lepard
Assistant
Income before taxes (b)
Income tax expense
Net income
Pre tax profit % (b/a)