$ Standard rate and variable costs Service rate per hour Labor cost Overhead cost Selling, general, and administrative cost Expected fixed costs Facility maintenance Selling, general, and administrative 86.00 30.00 6.70 3.40 $515,000 146,000 Required: a. Prepare the pro forma income statement that would appear in the master budget if the firm expects to provide 33,000 hours of services in Year 1 b. A marketing consultant suggests to Mr. Cooper that the service rate may affect the number of service hours that the firm can achieve. According to the consultant's analysis, if Fanning charges customers $81 per hour, the firm can achieve 39,000 hours of services. Prepare a flexible budget using the consultant's assumption. c. The same consultant also suggests that if the firm raises its rate to $91 per hour, the number of service hours will decline to 30,000 Prepare a flexible budget using the new assumption. Complete this question by entering your answers in the tabs below. Required A Required B Required Prepare the pro forma income statement that would appear in the master budget If the firm expects to provide 33,100 hours of services in Year 1. FANNING COMPUTER SERVICES Pro Forma Income Statement Master Budget Variable costs: Fixed costs: Complete this question by entering your answers in the tabs below. Required A Required B Required A marketing consultant suggests to Mr. Cooper that the service rate may affect the number of service hours that the firm can achieve. According to the consultant's analysis, If Fanning charges customers $81 per hour, the firm can achieve 39,000 hours of services. Prepare a flexible budget using the consultant's assumption. FANNING COMPUTER SERVICES Pro Forma Income Statement Flexible Budget Variable costs: Fixed costs: Complete this question by entering your answers in the tabs below. Required A Required B Required The same consultant also suggests that if the firm raises its rate to $91 per hour, the number of service hours will decline to 30,000. Prepare a flexible budget using the new assumption. FANNING COMPUTER SERVICES Pro Forma Income Statement Flexible Budget Variable costs: Fixed costs: