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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:

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.)

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