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.

	Reported Income Statement				Master Budget
Billable hoursa			7,310			9,550
Revenue		$	681,000		$	821,000
Professional salaries (all variable)			345,500			405,500
Other variable costs (e.g., supplies, computer services)			99,100			121,100
Fixed costs			210,500			202,200
Profit		$	25,900		$	92,200

^aThese 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 profit variance analysis for K&B. (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.)