The managing partner of the law firm Sewell, Bagan, and Clark, LLP makes asset acquisition and disposal decisions for the firm. As managing partner, she supervises the partners in charge of the firm's three branch offices. Those partners have the authority to make employee compensation decisions. The partners' compensation depends on the profitability of their branch office. Vanessa Smith manages the City Branch, which has the following master budget and actual results for the year ended December 31.

Enter appropriate amount or item in the shaded cells. Use the drop-down lists when available An asterisk ( will appear next to an incorrect entry in the outlined cells. Leave no cells blank. Ensure to enter "o wherever applicable. Enter the unfavorable variances as a negative value Sewell, Bagan, and Clark, LLP City Branch Performance Report For the Year Ended December 31 1. Partner in Charge: Vanessa Smith Actual results Flexible Master Variance Variance budget budget 4,900 Billed hours Revenue Controllable variable 4,900 5,000 (137,200) 34,3 (117,600) 2 2,400 Direct labor Variable overhead (120,000) 40,000 4,900 39,2 Contribution margin Controllable fixed costs: (30,000) (30,000) Rent Other administrative 30, expenses 42,000 3,000 45,000 45,000 Branch operating income Actual Flexible Master ROI Residual Income- Enter appropriate amount or item in the shaded cells. Use the drop-down lists when available An asterisk ( will appear next to an incorrect entry in the outlined cells. Leave no cells blank. Ensure to enter "o wherever applicable. Enter the unfavorable variances as a negative value Sewell, Bagan, and Clark, LLP City Branch Performance Report For the Year Ended December 31 1. Partner in Charge: Vanessa Smith Actual results Flexible Master Variance Variance budget budget 4,900 Billed hours Revenue Controllable variable 4,900 5,000 (137,200) 34,3 (117,600) 2 2,400 Direct labor Variable overhead (120,000) 40,000 4,900 39,2 Contribution margin Controllable fixed costs: (30,000) (30,000) Rent Other administrative 30, expenses 42,000 3,000 45,000 45,000 Branch operating income Actual Flexible Master ROI Residual Income