EZ Tax is a tax accounting practice with partners and staff members Each billable hour of partner time has a $560 budgeted price and $280 budgeted variable cost Each billable hour of staff time has a budgeted price of $140 and a budgeted variable cost of $80 For the most recent year, the partnership budget called for 8,700 billable partner hours and 35,600 staff hours Actual results were as follows Partner revenue $ 4,538,000 8,300 hours Staff revenue $ 4,930,000 35,000 hours Required a Compute the sales price variance (Indicate the effect of each variance by selecting F for favorable, or U for unfavorable If there is no effect, do not select either option ) Partner Staff b Compute the total sales activity variance (Do not round intermediate calculations Indicate the effect of each variance by selecting F for favorable, or U for unfavorable If there is no effect, do not select either option ) c Compute the total sales mix variance (Do not round intermediate calculations Indicate the effect of each variance by selecting F for favorable, or U for unfavorable If there is no effect, do not select either option ) d Compute the total sales quantity variance (Do not round intermediate calculations Indicate the effect of each variance by selecting F for favorable, or U for unfavorable If there is no effect, do not select either option )

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 04, 2024

EZ-Tax is a tax accounting practice with partners and staff members. Each billable hour of partner time has a $560 budgeted price and $280 budgeted

EZ-Tax is a tax accounting practice with partners and staff members. Each billable hour of partner time has a $560 budgeted price and $280 budgeted variable cost. Each billable hour of staff time has a budgeted price of $140 and a budgeted variable cost of $80. For the most recent year, the partnership budget called for 8,700 billable partner-hours and 35,600 staff-hours. Actual results were as follows:


Partner revenue	$	4,538,000	8,300	hours
Staff revenue	$	4,930,000	35,000	hours

Required:

a. Compute the sales price variance. (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)


Partner
Staff

b. Compute the total sales activity variance. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)

c. Compute the total sales mix variance. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)

d. Compute the total sales quantity variance. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)