Question:
Sales Price and Activity Variances
Dylan & Father operate a tax accounting practice with partners and staff members. Each billable hour of partner time has a $770 budgeted price and $364 budgeted variable cost. Each billable hour of staff time has a budgeted price of $182 and a budgeted variable cost of $98. This month, the partnership budget called for 5,100 billable partner-hours and 20,790 staff-hours. Actual results were as follows:
|
Partner revenue
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$3,612,000
|
4,800 hours
|
|
Staff revenue
|
$3,738,000
|
20,400 hours
|
Required
Compute the sales price and activity variances for these data. Also compute the mix and quantity variances.