Exercise 17-30 Flexible Budgeting. Service Organization (LO 17-5) K&B is a small management consulting firm. Last month, the firm billed fewer hours than expected, and, as expected, profits were lower than anticipated. Billable hours Revenue Professional salaries (all variable) Other variable costs is g. supplies, computer services) Foxed Coats Profit Reporled Income Statement 7,300 S 690,000 145.000 99.000 207.000 S 29.000 Master Budan 9.500 S 820.000 405.000 121.00 202.000 S 92.000 These are hours billed to clients. They are fewer than the number of hours worked because there is nonbillable time ic.g., slack periods, time in training sessions) and bocause some time worked for clients is not charged to them. Required: Prepare a flexible budget for K&B. Use billable hours as the measure of output (that is, units produced). (Do not round intermediate calculations.) Flexible Budget Revenue Casts: Professional salaries Other variable costs Fixed costs Total costs Profit