K&B is a small management consulting firm. Last month, the firm bed fewer hours than expected and as expected, profits were lower than anticipated. Billable hours Revenue Professional salaries (all variable) Other variable costs (eg, supplies, computer services) Fixed costs Profit Reported Income Statement 2/280 $579,000 340,000 98,00 zes, $27.000 Master Budget 9,800 $810,oo 480,000 120,00 209,000 $ 99,999 *These are hours billed to clients. They are fewer than the number of hours worked because there is nonbillable time (eg, 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.) Flexible Budget based on actual of 7,200 hours) Revenue Costs Professional salaries Other variable costs Fixed costs Total costs Profit