Prepare an analysis of the revenue change, separating the productivity effect (billing percentage) from the volume effect
Fantastic news! We've Found the answer you've been seeking!
Question:
Prepare an analysis of the revenue change, separating the productivity effect (billing percentage) | |||
from the volume effect (increase in number of consultants). |
Exhibit 4: Budget and Actual Income Statement: Quarter 2 2000 | ||||
Actual | Budget | |||
Revenues | $ 3,264,000 | $ 3,231,900 | ||
Less: | ||||
Consultants' Salaries and Fringes | $ 2,029,050 | $ 1,748,250 | ||
Operating Expenses | $ 938,560 | $ 877,300 | ||
Total Expenses | $ 2,967,610 | $ 2,625,550 | ||
Operating Profit | $ 296,390 | $ 606,350 | ||
Profit % | 9.1% | 18.8% | ||
Operating Statistics | ||||
Number of Consultants(FTE) | 113 | 105 | ||
Hours Supplied | 50,850 | 47,250 | ||
Hours Billed | 39,000 | 35,910 | ||
Average Billing Rate | $ 83.69 | $ 90.00 |
Your Solution: | |||||||
Actual Consultant Hours Supplied | Actual Billing % | Expected Billing % | Expected Billing Rate | Variance Amount | Favorable/ Unfavorable? | ||
Consultant Billing Percentage | |||||||
Actual Consultant Hours Supplied | Expected Consultant Hours Supplied | Expected Billing % | Expected Billing Rate | Variance Amount | Favorable/ Unfavorable? | ||
Consultant Quantity |
Related Book For
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
Posted Date: