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 9,800 $ 826,000 408,000 121,600 7,360 Billable hours Revenue Professional salaries (all variable) Other variable costs (e.g., supplies, computer services) Fxed costs $686,000 348,000 99,600 208,200 $30,200 S 93,20 Profit hese are hours billed to clients. They are fewer than the number of hours worked because there is nonbillable me charged to them. slack periods, time in training sessions and because some time worked for clients is not e g Required Prepare a fiexible budget for K&B. Use billable hours as the measure of output (that is, units produced). (Do not round intermediate calculations.) Flexible Budget Revenue Costs Professional salaries Other variable costs Fixed costs Total costs Profit