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 Revenue Professional salaries (all variable) 7,200 $670,000 9,000 $810,000 340,000 400,000 Other variable costs (e.g., supplies, computer services) Fixed costs 98,000 120,000 205,000 200,000 Profit $ 27,000 $ 90,000 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 (7,200 hrs.) Cost Variances Price Variances Flexible Budget (7,200 hrs.) Master Sales Activity Variance Budget (9,000 hrs.) Revenue Professional salaries Other variable costs Fixed costs $ 670,000 340,000 98,000 $ 810,000 400,000 120,000 Profit 205,000 $ 27,000 200,000 $ 0 $ 90,000