EZ-Tax is a tax accounting practice with partners and staff members. Each billable hour of partner time has a $580 budgeted price and $290 budgeted variable cost. Each billable hour of staff time has a budgeted price of $130 and a budgeted variable cost of $80. For the most recent year, the partnership budget called for 8,400 billable partner-hours and 33,700 staff-hours. Actual results were as follows: Partner revenue$4,492,000 7,900hoursStaff revenue$4,315,000 33,000hours Required: c. Compute the total sales mix variance. (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.) d. Compute the total sales quantity variance. (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.)
EZ-Tax is a tax accounting practice with partners and staff members. Each billable hour of partner time has a $580 budgeted price and $290 budgeted variable cost. Each billable hour of staff time has a budgeted price of $130 and a budgeted variable cost of $80. For the most recent year, the partnership budget called for 8,400 billable partner-hours and 33,700 staff-hours. Actual results were as follows: Partner revenue$4,492,000 7,900hoursStaff revenue$4,315,000 33,000hours Required: c. Compute the total sales mix variance. (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.) d. Compute the total sales quantity variance. (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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:EZ-Tax is a tax accounting practice with partners and staff members. Each billable hour of partner time has a $580 budgeted price and
$290 budgeted variable cost. Each billable hour of staff time has a budgeted price of $130 and a budgeted variable cost of $80. For the
most recent year, the partnership budget called for 8,400 billable partner-hours and 33,700 staff-hours. Actual results were as follows:
Partner revenue$4,492,000 7,900hoursStaff revenue$4,315,000 33,000hours
Required:
c. Compute the total sales mix variance. (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.)
d. Compute the total sales quantity variance. (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.)
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