a) Sinclair and Reid, an accounting firm, has budgeted $200 000 in fixed expenses per month for the tax department. It h

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a) Sinclair and Reid, an accounting firm, has budgeted $200 000
in fixed expenses per month for
the tax department. It has also budgeted variable costs of $10 per
tax return prepared for
supplies, $70 per return for labour, and $20 per return for
computer time. The firm expects
revenue from tax return preparation to be $1.2Million, based on
4000 tax returns at $300 each.
During the current month, 3700 tax returns were actually prepared,
at an average fee of $294
each. Actual variable costs were $18 200 for supplies, $130 000 for
labour, and $36 000 for
computer time. Actual fixed costs were $200 000.
b) Refer to the information in question 2 above.
Required
Compute the flexible budget variance for Sinclair and Reid.