Question
In: Accounting
EZ-Tax is a tax accounting practice with partners and staff members. Each billable hour of partner...
EZ-Tax is a tax accounting practice with partners and
staff members. Each billable hour of partner time has a $580
budgeted price and $290 budgeted variable cost. 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 partnership budget
called for 8,400 billable partner-hours and 33,700 staff-hours.
Actual results were as follows:
Partner
revenue$4,492,000 7,900hoursStaff
revenue$4,315,000 33,000hours
Required:
a. Compute the sales price
variance. (Indicate the effect of each variance by
selecting "F" for favorable, or "U" for unfavorable. If there is no
effect, do not select either option.)
b. Compute the total sales activity
variance. (Do not round intermediate calculations. Indicate
the effect of each variance by selecting "F" for favorable, or "U"
for unfavorable. If there is no effect, do not select either
option.)
c. Compute the total sales mix
variance. (Do not round intermediate calculations. Indicate
the effect of each variance by selecting "F" for favorable, or "U"
for unfavorable. If there is no effect, do not select either
option.)
d. Compute the total sales quantity
variance. (Do not round intermediate calculations. Indicate
the effect of each variance by selecting "F" for favorable, or "U"
for unfavorable. If there is no effect, do not select either
option.)
Solutions
ekkarill92 answered 2 months agoRelated Solutions
EZ-Tax is a tax accounting practice with partners and staff members. Each billable hour of partner...
EZ-Tax is a tax accounting practice with partners and staff
members. Each billable hour of partner time has a $600 budgeted
price and $310 budgeted variable cost. 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 partnership budget called for
8,400 billable partner-hours and 35,650 staff-hours. Actual results
were as follows.
Partner revenue
$
4,650,000
7,900
hours
Staff revenue
$
4,580,000
35,000
hours
Required:...
EZ-Tax is a tax accounting practice with partners and staff members. Each billable hour of partner...
EZ-Tax is a tax accounting practice with partners and staff
members. Each billable hour of partner time has a $550 budgeted
price and $270 budgeted variable cost. Each billable hour of staff
time has a budgeted price of $130 and a budgeted variable cost of
$60. For the most recent year, the partnership budget called for
8,700 billable partner-hours and 34,600 staff-hours. Actual results
were as follows:
Partner revenue
$
4,465,000
8,300
hours
Staff revenue
$
4,455,000
34,000
hours
Required:...
EZ-Tax is a tax accounting practice with partners and staff members. Each billable hour of partner...
EZ-Tax is a tax accounting practice with partners and staff
members. Each billable hour of partner time has a $570 budgeted
price and $280 budgeted variable cost. Each billable hour of staff
time has a budgeted price of $140 and a budgeted variable cost of
$90. For the most recent year, the partnership budget called for
8,800 billable partner-hours and 32,700 staff-hours. Actual results
were as follows:
Partner revenue
$
4,584,000
8,200
hours
Staff revenue
$
4,505,000
32,000
hours
Required:...
EZ-Tax is a tax accounting practice with partners and staff members. Each billable hour of partner...
EZ-Tax is a tax accounting practice with partners and staff
members. Each billable hour of partner time has a $560 budgeted
price and $280 budgeted variable cost. Each billable hour of staff
time has a budgeted price of $140 and a budgeted variable cost of
$80. For the most recent year, the partnership budget called for
8,700 billable partner-hours and 35,600 staff-hours. Actual results
were as follows:
Partner revenue
$
4,538,000
8,300
hours
Staff revenue
$
4,930,000
35,000
hours
Required:...
EZ-Tax is a tax accounting practice with partners and staff members. Each billable hour of partner...
EZ-Tax is a tax accounting practice with partners and
staff members. Each billable hour of partner time has a $580
budgeted price and $290 budgeted variable cost. 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 partnership budget
called for 8,400 billable partner-hours and 33,700 staff-hours.
Actual results were as follows:
Partner
revenue$4,492,000 7,900hoursStaff
revenue$4,315,000 33,000hours
Required:
a. Compute the sales price
variance. (Indicate the effect...
A and B are equal partners in a personal services partnership. Each partner acquired her partnership...
A and B are equal partners in a personal services partnership.
Each partner acquired her partnership interest for cash several
years ago. None of the partnership’s asset sis Section 704(c)
property. The partnership has the following balances sheet:
Assets
Liabilities and Partnerships' Capital
A.B.
FMV
cash
13,000
13,000
Liabilities
2,000
capital
assets
Capital
A.B.
FMV
collectibles
1,000
3,000
A
10,000
15,000
Other
6,000
2,000
B
10,000
15,000
Subtotal
...
Assume that Partners A and B each report a Capital Account of $650,000. Partner C wants...
Assume that Partners A and B each report a Capital Account of
$650,000. Partner C wants to join the partnership as an equal
one-third partner. Because the partnership has been very
profitable, Partners A and B require Partner C to contribute
$1,400,000 in cash to the partnership in return for a one-third
interest. Assume that Partners A and B share profits 60% and 40%,
respectively, prior to the admission of Partner C. After admission
of Partner C, Partners A and...
A and B are equal partners in a personal services partnership. Each partner acquired her partnership...
A and B are equal partners in a personal services partnership.
Each partner acquired her partnership interest for cash several
years ago. None of the partnership’s assets is Section 704(c)
property. The partnership has the following balance sheet:
Assets
Liabilities and Partners’ Capital
A.B.
F.M.V.
A.B.*
F.M.V.
Cash
$13,000
$12,000
Liabilities:
$2,000
Capital
Assets:
Capital:
Collectibles
1,000
3,000
A
$10,000
15,000
Other
6,000
2,000
B
10,000
15,000
Subtotal
7,000
5,000
Receivables
0
14,000 ...
Luis and Jennifer formed the JL Partnership as equal partners. Each partner contributed cash and property...
Luis and Jennifer formed the JL Partnership as equal partners.
Each partner contributed cash and property with a value of $80,000
for partnership operations. As a result of these contributions,
Luis had a basis of $80,000 and Jennifer a basis of $60,000 in
their partnership interests. At the end of their first year of
operations, they had the following results: Gross sales $110,000
Cost of goods sold 75,000 Rent expense 18,000 Employees’ salaries
20,000 Utilities 3,000 Charitable contribution 500 Section...
The Monroe Partnership has two partners – Amy and Claire. Each partner has a 50% interest...
The Monroe Partnership has two partners – Amy and Claire. Each
partner has a
50% interest in the partnership. Amy also owns 80% of the stock
(80 shares) of the
Zena Corporation. The other 20% (20 shares) of Zena are owned by
Wendy who is
not related to Amy or Claire. Based on these facts, the Monroe
partnership will be
deemed to own _____________ shares of Zena and Claire will be
deemed to own
___________ shares of Zena.
a. 80...
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