Legal Corporation offers a wide range of legal services to its customers. Each of the firm's attorneys can negotiate billing rates with their clients. Legal Corporation set a budget at the start of the year to better manage its operations. Total billed hours, amount billed per hour, and variable expense per hour were all included in the budget.

Unfortunately, the firm failed to meet its budgeted goals for last year. The results are shown below.

Actual Budget

Total hours billed 5,800 6,100

Amount billed/hour $375 $425

The hourly variable expense was estimated at $60, but the total variable expense was $295,000. The reasons for the firm's failure to fulfill its budgeted targets are a source of contention among the attorneys. Calculate the variance in variable expenses. Make your computations visible.