please include interpretation of the solution in 5 sentences.

Exhibit 2: Budget and Actual Income Statement: Quarter 2 2000 Actual 3.264,000 Budget 3.231.900 $ $ $ $ $ Revenues Less: Consultants Salaries and Fringes Operating Expenses Total Expenses Operating Profit Profit % Operating Statistics Number of Consultants(FTE) Hours Supplied Hours Billed Average Billing Rate 2.029.050 $ 938.560 $ 2967 610$ 296,390 $ 9.1% 1,748.250 877,300 2.625.550 606,350 18.8% 113 50.850 39,000 83.69 105 47.250 35,910 90.00 $ Question 2: Prepare a variance analysis report based on the information in Exhibit2 Formulas and approach: Variance analysis formula: Total revenue variance = AR-ER Revenue decomposition: Revenue = Price per unit" Quantity of units sold (R =P) Quantity Efficiency variance: variance = (AQ - EQ) EP Price/Rate variance: variance = (AP-EP)'AQ Decompose the information above into Revenue Quantity & Rate. Consultant Quantity and Rate. and Billing %. Conduct a variance for each to determine which factors were Favorable or Unfavorable. Your Solution: Actual Quantity Budgeted Quantity Expected Price Favorable! Variance Amount Unfavorable? Revenue Quantity (# Hours) Actual Price Expected Price Actual Quantity Favorable! Variance Amount Unfavorable? Revenue Rate (Hourly Rate) Total Revenue Variance Actual Quantity Budgeted Quantity Expected Price Favorable Variance Amount Unfavorable? Consultant Expense Quantity Actual Price Expected Price Actual Quantity Favorable Variance Amount Unfavorable? Consultant Expense Rate Total Consultant Expense Variance Actual Operating Expenses Expected Operating Expenses Favorable! Variance Amount Unfavorable? Operating Expense Total Expense Variance