2 Required Indicate whether each of the following variances is favorable (F) or unfavorable (U). The first one has been done as an example. (Select "None" if there is no effect (i.e., zero variance).) 10 points Type of Variance 8 01:33:34 $ Item to Classify Sales volume Sales price Materials cost Materials usage Labor cost $ Standard 40.700 units $ 3.67 per unit $ 3.60 per pound 91.700 pounds $ 10.70 per hour 61.700 hours $ 407,000 $ 3.27 per unit Actual 42,700 units 3.70 per unit 3.70 per pound 90,700 pounds 10.30 per hour 62,500 hours 397,000 3.23 per unit eBook $ Labor usage Fixed cost spending Fixed cost per unit (volume) ( $ Print $ 3 Required Compute variances for the following items and indicate whether each variance is favorable (F) or unfavorable (U): (Select "None" if there is no effect (i.e., zero variance).) 10 points Variance Effect 8 01:33:27 $ $ $ $ $ $ $ $ Item Sales price Sales revenue Cost of goods sold Material purchases at 5,000 pounds Materials usage Production volume Wages at 4,000 hours Labor usage at $16 per hour Research and development expense Selling and administrative expenses eBook Actual 656 583,000 389,500 278,000 184,500 980 units 60.600 96 300 25,000 Budget 528 606,000 363,000 284,500 181,000 915 units 59,000 97,600 29,500 43,000 $ $ units $ $ Print $ $ $ $ $ $ 53,500 References LO Rooney Educational Services had budgeted its training service charge at $76 per hour. The company planned to provide 31,000 hours of training services during Year 3. By lowering the service charge to $65 per hour, the company was able to increase the actual number of hours to 32,300. 15 points 8 01:33:17 Required a. Determine the sales volume variance, and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) b. Determine the flexible budget variance, and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect (.e., zero variance).) c. Did lowering the price of training services increase revenue? eBook Sales Hint a. Volume variance b. Flexible budget variance b. c. Was the decision profitable ? Print References