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 |
$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.