Manji Gibson Educational Services had budgeted its training service charge at $75 per hour. The company planned to provide 38,000 hoursof training services during Year 3. By lowering the service charge to $57 per hour, the company was able to increase the actualnumber of hours to 39,300.Requireda. 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 noeffect (i.e., zero variance).)c. Did lowering the price of training services increase revenue?a. Volume varianceb. Flexible budget varianceWas the decision profitable?Sales

Detailed explanation:Since the actual number of hours was more than the budgeted number of hours,…

Answered: Gibson Educational Services had…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 24E: Rosenberry Company computed the following revenue variances for January: Revenue price variance...

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