Exercise $8-7$A $($Algo$)$ Evaluating a decision to increase sales volume by lowering sales price LO $8-3,8-4$

Jordan Educational Services had budgeted its training service charge at $$78$ per hour. The company planned to provide $38,000$ hours of training services during Year $3.$ By lowering the service charge to $$65$ per hour, the company was able to increase the actual number of hours to $39,500.$

Required

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$).$

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$).$

Did lowering the price of training services increase revenue?