Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

C and D only EZ-Tax is a tax accounting practice with partners and staff members. Each billable hour of partner time has a $530 budgeted

C and D onlyimage text in transcribedimage text in transcribed

EZ-Tax is a tax accounting practice with partners and staff members. Each billable hour of partner time has a $530 budgeted price and $250 budgeted variable cost. Each billable hour of staff time has a budgeted price of $140 and a budgeted variable cost of $70. For the most recent year, the partnership budget called for 8,400 billable partner-hours and 33,650 staff-hours. Actual results were as follows. Partner revenue Staff revenue $4,077,000 $4,655,000 7,900 hours 33,000 hours 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. (For all requirements, do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, o "U" for unfavorable. If there is no effect, do not select either option. Enter your answers rounded to the nearest whole dollar) X Answer is complete but not entirely correct. a. Partner Staff $ 110,000 U $ 35,000 F $ 185,500 U $ 128,743 XU b. Sales activity variance C. Sales mix variance d. Sales quantity variance $ 94,596 X U

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accountants Guide To Fraud Detection And Control

Authors: Howard R. Davia, Patrick C. Coggins, John C. Wideman, Joseph T. Kastantin

2nd Edition

0471353787, 9780471353782

More Books

Students also viewed these Accounting questions