M Chapter 17 - Homework (16, 2xA C ezto.mheducation.com/hm.tpx Bookmarks a Amazo

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M Chapter 17 - Homework (16, 2xA C ezto.mheducation.com/hm.tpx Bookmarks a Amazon.com: Online.. : Lending Club Login. PSECU-One of the.. CNN.com value: 1.00 points Exercise 17-26 Sales Activity Variance, Service Organization (LO 17-5) Lowe & Rent is a law firm that specializes in probate work. Last year, the firm billed more hours than expected, but, as the following data show, profits were lower than anticipated Reported Income Master Budget Statement 11,000 10,000 Billable hours Revenue Professional salaries (all variable) Other variable costs (e.g., supplies, computer services) Fixed costs $1380000$1,250,000 785,000 175,000 290,000 630,000 170,000 300,000 Profit s 130,000 150,000 aThese are hours billed to clients. They are fower than the number of hours worked because there is nonbillable time (o.g., slack periods, time in training sessions) and because some time worked for clients is not charged to them. Required: Prepare a sales activity variance analysis. (indicate the offect of each variance by selecting "F for favora for unfavorable, and "None" for no effectfi.e., zoro variance). Do not round your intermediate calculatic Flexible Budget Sales Activity Variance Mastor Budget Revenue Costs: Professional salaries Other variable costs Fixed costs Total costs Profit

Explanation / Answer

Flexible budget Sales activity variance Master budget Revenue 1375000 125000 F 1250000 Costs: Professional salaries 693000 63000 U 630000 Other variable costs 187000 17000 U 170000 Fixed costs 300000 0 None 300000 Total costs 1180000 80000 U 1100000 Profit 195000 45000 F 150000

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