Tax is a tax accounting practice with partners and staff members. Each billable hour of partner time
Question:
Tax is a tax accounting practice with partners and staff members. Each billable hour of partner time has a budgeted price of $580 and a budgeted variable cost of $290. Each billable hour of staff time has a budgeted price of $130 and a budgeted variable cost of $80. For the most recent year, the association's budget called for 8,400 billable member hours and 33,700 staff hours. The actual results were as follows:
Membership income $4,492,000 7,900 hours Staff income $4,315,000 33,000 hours
Required:
to. Calculate the variance of the selling price. (Indicate the effect of each variation by selecting "F" for favorable or "U" for unfavorable. If there is no effect, do not select either option.)
b. Calculate the total variance of sales activity. (Do not round intermediate estimates. Indicate the effect of each variation by selecting "F" for favorable or "U" for unfavorable. If there is no effect, do not select either option.)
C. Calculate the total variance of the sales mix. (Do not round intermediate estimates. Indicate the effect of each variation by selecting "F" for favorable or "U" for unfavorable. If there is no effect, do not select either option.)
d. Calculate the variance of the total amount of sales. (Do not round intermediate estimates. Indicate the effect of each variation by selecting "F" for favorable or "U" for unfavorable. If there is no effect, do not select either option.)
Fundamentals of Cost Accounting
ISBN: 978-1259565403
5th edition
Authors: William Lanen, Shannon Anderson, Michael Maher