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. Billable hoursa Revenue Professional salaries (all variable) Other variable costs (e.g., supplies, computer services) Fixed costs Profit Reported Income Statement Master Budget 7,390 9,950 $689,000 $829,000 349,500 409,500 99,900 121,900 208,800 203,800 $ 30,800 $ 93,800 *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.) Flexible Budget (based on actual of 7,390 hours) Revenue Costs: Professional salaries Other variable costs Fixed costs Total costs Profit