Tallon & Associates is a consulting firm specializing in business location studies. The results for last year, along with the budget, are as follows: Billable hours Revenue Professional salaries (variable) Other variable costs Fixed costs Office management salaries (fixed) Operating profit Actual 25,200 $2.772.000 1,310,000 488,000 492.000 317,000 $ 165,000 Budget 24,000 $2,400,000 1,200,000 400,000 450,000 225,000 $ 125,000 Required: (Be sure to indicate whether the variance is favorable or unfavorable.) a. Prepare a flexible budget using billable hours as the measure of output. b. Prepare a sales activity variance analysis. c. Compute the sales price variance