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. Master Reported Income Statement Billable hoursa Revenue Professional salaries (all variable) Other variable costs (e.g., supplies, computer services) Fixed costs 9,750 S 825,000 407,500 121,500 203,000 S 93,000 7,350 685,000 347,500 99,500 212,500 S 25,500 Profit These 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 lf there is no effect, do not select either option.) Master Flexible Budget Sales Activity Variance Actual Cost Variances Price Variances Budget 750 hrs Revenue Professional salaries Other variable costs Fixed costs (7,350 hrs.) 685,000 347,500 99.500 212,500 S 25,500 $ 825,000 407,500 121,500 203,000 Profit $93,000