Market Research, Inc., is a marketing consulting firm that earns revenues by billing clients for hours worked. Last year, Market Research, Inc.'s billable hours were up 10 percent from expected levels, but as the following data show, profits were lower than anticipated.

Prepare a profit variance analysis for the company.

Transcribed Image Text:

Billable Hours Revenue. Costs: Actual Results 22,000 Hours $2,200,000 Master Budget 20,000 Hours $2,000,000 Professional Salaries (all variable). Other Variable Costs 1,350,000 1,100,000 (e.g., supplies, certain computer services) General Administrative (all fixed). Corporate Client Profit. 250,000 400,000 200,000 400,000 $300,000