Question 1 (10 points) The law firm of Dewey, Ketchum, and Howe is evaluating the results of the first quarter of the year. They have used the following projections for their billable hours to prepare the budget. Note that the company has three areas of practice: criminal defense, contract law, and personal investigations. Each practice area is operated as a profit center under the direction of the managing partner of that area. Practice Area Quarter 1 Hourly Billing Rates Criminal Defense 1,000 Contract Law $ 120.00 Personal Investigations $ 130,00 The following report provides the budget and actual results for the first quarter. 500 300 Budget Quarter 1 Actual Quarter 1 Practice Area Criminal Defense Hours Rate $ $ 1,000 150.00 150,000 $ $ 1,200 120.00 144,000 Revenue Contract Law Hours Rate 500 120.00 60,000 $ $ 550 130.00 71,500 Revenue Personal Investigations Hours Rate 300 130.00 39,000 280 110.00 30,800 $ $ Revenue $ Total Company Hours 1,800 2,030 Revenue $ 249,000 S 246,300 Required: Review this report from the perspective of a manager. Describe the results for the first quarter. Was the company successful? Be specific and address volumes and rates in each of the operating areas and for the total company. Identify the important variances