Chapter 17, Problem 36E

Sales Price and Activity Variances

EZ-Tax is a tax accounting practice with partners and staff members. Each billable hour of partner time has a $800 budgeted price and $375 budgeted variable cost. Each billable hour of staff time has a budgeted price of $210 and a budgeted variable cost of $120. For the most recent year, the partnership budget called for 5,000 billable partner-hours and 20,000 staff-hours. Actual results were as follows:

Required

Compute the sales price and activity variances for these data. Also compute the mix and quantity variances.