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Exercise 8-7A Evaluating a decision to increase sales volume by lowering sales price LO 8-3, 8-4 Austen Educational Services had budgeted its training service charge
Exercise 8-7A Evaluating a decision to increase sales volume by lowering sales price LO 8-3, 8-4 Austen Educational Services had budgeted its training service charge at $79 per hour. The company planned to provide 33,000 hours of training services during 2015. By lowering the service charge to $64 per hour, the company was able to increase the actual number of hours to 35,000 Required: a. Determine the sales volume variance and indicate the effect of the variance by selecting favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) Volume Variance Sales b. Determine the flexible budget variance and indicate the effect ofthe variance by selecting favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) Flexible Budget Variance Sales
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