Accounting EZ-Tax is a tax accounting practice with partners and staff members. Each billable hour of partner time has a $520 budgeted price and $230 budgeted variable cost. Each billable hour of staff time has a budgeted price of $140 and a budgeted variable cost of $80. For the most recent year, the partnership budget called for 8,200 billable partner-hours and 36,650 staff-hours. Actual results were as follows. Partner revenue $ 3,884,000 7,700 hours Staff revenue $ 5,065,000 36,000 hours Required: a. Compute the sales price variance. b. Compute the total sales activity variance. c. Compute the total sales mix variance. d. Compute the total sales quantity variance. (For all requirements, do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Enter your answers rounded to the nearest whole dollar) a. Partner Staff b. Sales activity variance C. Sales mix variance d. Sales quantity variance

Accounting EZ-Tax is a tax accounting practice with partners and staff members. Each billable hour of partner time has a $520 budgeted price and $230 budgeted variable cost. Each billable hour of staff time has a budgeted price of $140 and a budgeted variable cost of $80. For the most recent year, the partnership budget called for 8,200 billable partner-hours and 36,650 staff-hours. Actual results were as follows. Partner revenue $ 3,884,000 7,700 hours Staff revenue $ 5,065,000 36,000 hours Required: a. Compute the sales price variance. b. Compute the total sales activity variance. c. Compute the total sales mix variance. d. Compute the total sales quantity variance. (For all requirements, do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Enter your answers rounded to the nearest whole dollar) a. Partner Staff b. Sales activity variance C. Sales mix variance d. Sales quantity variance

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Description: AccountingEZ-Tax is a tax accounting practice with partners and staff members. Eachbillable hour of partner time has a $520 budgeted price and $230 budgetedvariable cost. Each billable hour of staff time has a budgeted price of $140 anda budgeted va

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Leist Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,170 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting: Fixed element per month Variable element per client-visit Revenue $ 0 $ 50.80 Personnel expenses $ 26,600 $ 15.60 Medical supplies 1,400 9.40 Occupancy expenses 7,600 2.40 Administrative expenses 5,300 0.10 Total expenses $ 40,900 $ 27.50 The occupancy expenses in the flexible budget for September would be closest to: Multiple Choice A. $13,215 B. 12,808 C. $13,583 D. $12,880
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Howard Cooper, the president of Campbell Computer Services, needs your help. He wonders about the potential effects on the firm's net income if he changes the service rate that the firm charges its customers. The following basic data pertain to fiscal Year 3. Standard rate and variable costs Service rate per hour $ 85.00 Labor cost 37.00 Overhead cost 7.10 Selling, general, and administrative cost Expected fixed costs Facility maintenance Selling, general, and administrative 3.80 $522,000 142,000 Required: a. Prepare the pro forma income statement that would appear in the master budget if the firm expects to provide 45,000 hours of services in Year 3. b. A marketing consultant suggests to Mr. Cooper that the service rate may affect the number of service hours that the firm can achieve. According to the consultant's analysis, if Campbell charges customers $80 per hour, the firm can achieve 50,000 hours of services. Prepare a flexible budget using the consultant's assumption. c. The same…
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