EZ-Tax is a tax accounting practice with partners and staff members. Each billable hour of partner time has a $510 budgeted price and S230 budgeted variable cost. Each billable hour of staff time has a budgeted price of S140 and a budgeted variable cost of S70. For the most recent year, the partnership budget called for 8,900 billable partner-hours and 33,750 staff-hours. Actual results were as follows. Partner revenue S 4,174,000 8,400 hours Staff revenue S 4,650,000 33,000 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)

EZ-Tax is a tax accounting practice with partners and staff members. Each billable hour of partner time has a $510 budgeted price and S230 budgeted variable cost. Each billable hour of staff time has a budgeted price of S140 and a budgeted variable cost of S70. For the most recent year, the partnership budget called for 8,900 billable partner-hours and 33,750 staff-hours. Actual results were as follows. Partner revenue S 4,174,000 8,400 hours Staff revenue S 4,650,000 33,000 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)

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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