EZ-Tax is a tax accounting practice with partners and staff members. Each billable hour of partner time has a $590 budge
Posted: Wed May 04, 2022 6:24 am
EZ-Tax is a tax accounting practice with partners and staff
members. Each billable hour of partner time has a $590 budgeted
price and $300 budgeted variable cost. Each billable hour of staff
time has a budgeted price of $120 and a budgeted variable cost of
$70. For the most recent year, the partnership budget called for
8,800 billable partner-hours and 36,600 staff-hours. Actual results
were as follows.
Required:
a. Compute the sales price variance.
b. Compute the total sales activity
variance.
c. Compute the total sales mix
variance.
d. Compute the total sales quantity
variance.
(For all requirements, do not round intermediate
calculations. Indicate the effect of each variance by selecting "F"
for favorable, or "U" for unfavorable. If there is no effect, do
not select either option. Enter your answers rounded to the nearest
whole dollar)
members. Each billable hour of partner time has a $590 budgeted
price and $300 budgeted variable cost. Each billable hour of staff
time has a budgeted price of $120 and a budgeted variable cost of
$70. For the most recent year, the partnership budget called for
8,800 billable partner-hours and 36,600 staff-hours. Actual results
were as follows.
Required:
a. Compute the sales price variance.
b. Compute the total sales activity
variance.
c. Compute the total sales mix
variance.
d. Compute the total sales quantity
variance.
(For all requirements, do not round intermediate
calculations. Indicate the effect of each variance by selecting "F"
for favorable, or "U" for unfavorable. If there is no effect, do
not select either option. Enter your answers rounded to the nearest
whole dollar)