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			7,360			9,800
Revenue		$	686,000		$	826,000
Professional salaries (all variable)			348,000			408,000
Other variable costs (e.g., supplies, computer services)			99,600			121,600
Fixed costs			213,000			203,200
Profit		$	25,400		$	93,200

^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.)

	Actual (7,360 hrs.)	Cost Variances		Price Variances		Flexible Budget	Sales Activity Variance		Master Budget (9,800 hrs.)
Revenue	$686,000								$826,000
Professional salaries	348,000								408,000
Other variable costs	99,600								121,600
Fixed costs	213,000								203,200
Profit	$25,400					$0			$93,200