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 hours a 7,290 9,450 Revenue $ 679,000 $ 819,000 Professional salaries (all variable) 344,500 404,500 Other variable costs (e g , supplies, computer services) 98,900 120,900 Fixed costs 206,800 201,800 Profit $ 28,800 $ 91,800 a 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 flexible budget for K B Use billable hours as the measure of output (that is, units produced) (Do not round intermediate calculations Enter your answers rounded to the nearest whole dollar )

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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

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 hours^a			7,290		9,450
Revenue		$	679,000	$	819,000
Professional salaries (all variable)			344,500		404,500
Other variable costs (e.g., supplies, computer services)			98,900		120,900
Fixed costs			206,800		201,800
Profit		$	28,800	$	91,800

^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 flexible budget for K&B. Use billable hours as the measure of output (that is, units produced). (Do not round intermediate calculations. Enter your answers rounded to the nearest whole dollar.)