Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 8-7A (Algo) Evaluating a decision to increase sales volume by lowering sales price LO 8-3, 8-4 Fanning Educational Services had budgeted its training service

image text in transcribed
image text in transcribed
Exercise 8-7A (Algo) Evaluating a decision to increase sales volume by lowering sales price LO 8-3, 8-4 Fanning Educational Services had budgeted its training service chaige at $81 per hour, The company planned to provide 36,000 hours of training services during Year 3. By lowering the service charge to $66 per hour, the company was able to increase the actual number of hours to 38,000 . Required a. Determine the sales volume variance, and indicate whether it is favorable (F) or unfavorable (U). Note: 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 unfovorable (U). Note: Select "None" if there is no effect (i.e., zero variance). c. Did lowering the price of training services increase revenue? Exercise 8-7A (Algo) Evaluating a decision to increase sales volume by lowering sales price Lo 8-3, 8-4 Fanning Educational Services had budgeted its training service charge at $81 per hour. The company planned to provide 36,000 hours of training services during Year 3. By lowering the service charge to $66 per hour, the company was able to increase the actual number of hours to 38,000 . Required a. Determine the sales volume variance, and indicate whether it is favorable (F) or unfavorable (U), Note: 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). Note: Select "None" if there is no effect (i.e., zero variance). c. Did lowering the price of training services increase revenue

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Accounting Volume 1

Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura

12th Canadian Edition

0136889373, 9780136889373

More Books

Students also viewed these Accounting questions

Question

What is your theoretical orientation? (For Applied Programs Only)

Answered: 1 week ago