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Oakman Accounting Partners is a small tax and accounting services firm. Each billable hour of partner time has a $960 budgeted price and $450 budgeted variable cost. Each billable hour of staff time has a budgeted price of $250 and a budgeted variable cost of $150. For the most recent year, the partnership budget called for 7,500 billable partner-hours and 30,000 staff-hours. Actual results were as follows: Partner revenue Staff revenue $ 7,675,000 $ 8,120,000 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. 7,800 hours 33,000 hours Note: 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.

Oakman Accounting Partners is a small tax and accounting services firm. Each billable hour of partner time has a $960 budgeted price and $450 budgeted variable cost. Each billable hour of staff time has a budgeted price of $250 and a budgeted variable cost of $150. For the most recent year, the partnership budget called for 7,500 billable partner-hours and 30,000 staff-hours. Actual results were as follows: Partner revenue Staff revenue $ 7,675,000 $ 8,120,000 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. 7,800 hours 33,000 hours Note: 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.

FINANCIAL ACCOUNTING
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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Oakman Accounting Partners is a small tax and accounting services firm. Each billable hour of partner time has a $960 budgeted price and $450 budgeted variable cost. Each billable hour of staff time has a budgeted price of $250 and a budgeted variable cost of $150. For the most recent year, the partnership budget called for 7,500 billable partner-hours and 30,000 staff-hours. Actual results were as follows: Partner revenue Staff revenue $ 7,675,000 $ 8,120,000 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. a. Partner a. Staff b. Sales activity variance c. Sales mix variance d. Sales quantity variance 7,800 hours 33,000 hours Note: 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.
Transcribed Image Text:Oakman Accounting Partners is a small tax and accounting services firm. Each billable hour of partner time has a $960 budgeted price and $450 budgeted variable cost. Each billable hour of staff time has a budgeted price of $250 and a budgeted variable cost of $150. For the most recent year, the partnership budget called for 7,500 billable partner-hours and 30,000 staff-hours. Actual results were as follows: Partner revenue Staff revenue $ 7,675,000 $ 8,120,000 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. a. Partner a. Staff b. Sales activity variance c. Sales mix variance d. Sales quantity variance 7,800 hours 33,000 hours Note: 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.
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