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 Statement Master Budget Billable hoursa 11,500 10,000 Revenue $ 1,370,000 $ 1,250,000 Professional salaries (all variable) 780,000 630,000 Other variable costs (e.g., supplies, computer services) 170,000 160,000 Fixed costs 275,000 290,000 Profit $ 145,000 $ 170,000 a These are hours billed to clients. They are fewer than the number of hours worked because there is nonbillable time (e.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 effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect(i.e., zero variance). Do not round your intermediate calculations.)