EZ-Tax is a tax accounting practice with partners and staff members. Each billable hour of partner time has a $540 budge
Posted: Thu May 19, 2022 12:14 pm
EZ-Tax is a tax accounting practice with partners and staff
members. Each billable hour of partner time has a $540 budgeted
price and $260 budgeted variable cost. Each billable hour of staff
time has a budgeted price of $130 and a budgeted variable cost of
$70. For the most recent year, the partnership budget called for
8,000 billable partner-hours and 33,700 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.
members. Each billable hour of partner time has a $540 budgeted
price and $260 budgeted variable cost. Each billable hour of staff
time has a budgeted price of $130 and a budgeted variable cost of
$70. For the most recent year, the partnership budget called for
8,000 billable partner-hours and 33,700 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.