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Exercise 8-7A (Algo) Evaluating a decision to increase sales volume by lowering sales price LO 8-3, 8-4 16 8.75 points Thornton Educational Services had budgeted its training service charge at $75 per hour. The company planned to provide 22.000 hours of training services during Year 3, By lowering the service charge to $64 per hout, the company was able to increase the actual number of hours to 23,000. Required a. Determine the sales volume variance, and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect (ie, 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? 05110 Deferences Salus Volume variance b. Flexible budget variance c Was the decision profitable? Exercise 8-14A (Algo) Calculating and explaining labor price and usage variances LO 8.6 17 8.75 points Russell and Sons, a CPA firm, established the following standard labor cost data for completing what the firm referred to as a Class 2 tax return. Russell expected each Class 2 return to require 41 hours of labor at a cost of $50 per hour. The firm actually completed 660 returns. Actual labor hours averaged 4.0 hours per return and actual labor cost amounted to $55 per hout Required a. Determine the total labor variance and indicate whether it is favorable (F) or unfavorable (U). b. Determine the labor price variance and indicate whether it is favorable (F) or unfavorable (U). c. Determine the labor usage variance and indicate whether it is favorable (F) or unfavorable (U). (For all requirements, do not round intermediate calculations and select "None" if there is no effect (le, zero variance).) OSO:37 References a. Total labor variance b. Total labor price variance c. Total labor usage variance