Perez Educational Services had budgeted its training service charge at $$72$ per hour. The company planned to provide $37,000$ hours of

training services during the year. By lowering the service charge to $$56$ per hour, the company was able to increase the actual number

of hours to $38,100.$

Required

a$.$ Determine the sales volume variance, and indicate whether it is favorable or unfavorable.

Note: Select "None" if there is no effect $($i$.$e$.,$ zero variance$).$

b$.$ Determine the flexible budget variance, and indicate whether it is favorable or unfavorable.

Note: Select "None" if there is no effect $($i$.$e$.,$ zero variance$).$

c$.$ Did lowering the price of training services increase revenue?