**Jordan Educational Services Training Sales Variance Analysis**Jordan Educational Services had initially set the price for its training services at $71 per hour with an expectation of providing 31,000 hours of training throughout the year. By adjusting the service charge to $55 per hour, the company successfully increased the actual service hours to 32,000.**Required Analysis:**a. **Sales Volume Variance:** - Determine if there is a sales volume variance and classify it as favorable or unfavorable. - *Note: Select "None" if there is no effect (i.e., zero variance).*b. **Flexible Budget Variance:** - Calculate the flexible budget variance and assess whether it is favorable or unfavorable. - *Note: Select "None" if there is no effect (i.e., zero variance).*c. **Revenue Impact Assessment:** - Evaluate if decreasing the training service price has led to an increase in revenue.The table below summarizes the findings for each required analysis:| | Sales ||-----------------------|-------------|| a. Volume variance | || b. Flexible budget variance | || c. Did lowering the price of training services increase revenue? | |- **a. Volume variance:** Indicate if there is any change in volume and its favorability.- **b. Flexible budget variance:** Indicate the presence of budget variance and its status.- **c. Revenue Change:** Confirm whether revenue has increased after the price reduction. **Jordan Educational Services Case Study** Jordan Educational Services had initially set its training service charge at $71 per hour. The company planned to provide a total of 31,000 hours of training services over the course of the year. By reducing the hourly service charge to $55, the company successfully increased the actual number of training hours to 32,000.**Analysis Required:**a. **Sales Volume Variance** - Determine whether the sales volume variance is favorable or unfavorable. - *Note: Select "None" if the variance is zero (i.e., no effect).*b. **Flexible Budget Variance** - Determine whether the flexible budget variance is favorable or unfavorable. - *Note: Select "None" if the variance is zero (i.e., no effect).*c. **Impact of Price Reduction** - Assess whether lowering the price of training services led to an increase in revenue.**Interactive Component:**A table is provided with options for each question to mark as "Favorable," "Unfavorable," or "None." A dropdown selection tool appears under the "Sales" column, allowing the user to choose the appropriate response for each part of the analysis (a, b, c).

Sales volume variance shows difference in actual sales and budgeted sales at budgeted sales price.…

Answered: Jordan Educational Services had…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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I am not sure if my answears are right. please complete the income statement below. Thanks.
You have asked your sales manager to explain why budgeted revenues for your division are below expectations. The budget indicated $1,039,500 of revenues based on a sales volume of 1,485,000 units. Sales records indicate that 1,500,400 product units were actually sold, but revenues were only $1,020,272. Calculate the sales price variance, the sale volume variance, and the total revenue variance. Sales price variance $ Unfavorable Sales volume variance $ Favorable Total revenue variance $ Unfavorable
The Ferguson Company estimated that October sales would be 100,000 units with an average selling price of $6.00. Actual sales for October were 105,000 units, and average selling price was $5.95. The sales volume variance was: Multiple Choice О $5,250 unfavorable. $5,250 favorable. $5,000 unfavorable. О $5,000 favorable.
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Jay Banning, CEO and a major stockholder of Banning Incorporated, was unhappy with its operating results for the past year. The company manufactures two environmentally friendly industrial caliber cleaning machines used primarily in automobile repair shops, gas stations, and auto dealerships. The master budget and operating results for the year (000s omitted except for the selling price per unit) follow: Sales Variable cost Contribution Fixed cost Operating income Units sold Unit selling price CM Flexible budget variance CM Sales volume variance CM Sales quantity variance CM Sales mix variance Actual T10 $ 132,000 61,700 $ 70,300 10,000 $ 60,300 1,200 $ S40 $ 58,695 28,000 $ 30,695 10,000 $ 20,695 1,505 T10 15,300 Favorable Favorable Favorable $ (14,101) Unfavorable Budget T10 $ 105,000 50,000 $ 55,000 10,000 $ 45,000 $ 100 Required: 1. Compute the contribution margin flexible-budget variance, contribution margin sales volume variance, contribution margin sales quantity variance, and…
am. 117.
Komatsu company’s budget for sales was 1,000 of small size tractor for $1,200 per the tractor. The company’s actual sales was $1,365,000, sales units for 1,300 bikes. What are the Sales Price Variance and Sales Activity Variance? And show in graph.
In the current year, Becker Sofa Company expected to sell 12,900 leather sofas. Fixed costs for the year were expected to be $8,404,500; unit sales price was budgeted at $5,050; and unit variable costs were expected to be $2,650.Becker Sofa Company's margin of safety (MOS) in units is: Multiple Choice 9,698. 8,898. 10,798. 9,998. 9,398.
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TB MC Qu. 16-80 (Static) The net effect of AR-10's sales volume variance on profit: Duo, Incorporated Duo, Incorporated, carries two products and has the following year-end income statement (000s omitted) Product ZR-7 Units Sales $ Variable costs Product AR-10 Multiple Choice Budget 2,000 $ 6,000 2,400 1,800 $4,200 $ 1,800 Actual 2,800 $ 7,560 2,800 1,900 $4,700 $ 2,860 Fixed Costs Total Costs Operating income The net effect of AR-10's sales volume variance on profit is: Budget 6,000 $ 12,000 6,000 2,400 $ 8,400 $ 3,600 Actual 5,600 $ 11,760 5,880 2,400 $ 8,280 $ 3,480
Hogan Tax Company considers 6,000 direct labor hours or 300 tax returns its normal monthly capacity. Its standard variable overhead rate is $9 per direct labor hour. During the current month, $45,400 of variable overhead cost was incurred in working 5,600 direct labor hours to prepare 270 tax returns. Determine the following variances, and indicate whether each is favorable or unfavorable: Determine the following variances: Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable. Variable Overhead Variances Actual cost: Answer Split cost: Answer Standard cost: Answer a. Variable overhead spending Answer Answer b. Variable overhead efficiency Answer Answer
During the current year, Mute Corporation expected to sell 24,300 telephone switches. Fixed costs for the year were expected to be $12,145,500, the unit sales price was budgeted at $3,350, and unit variable costs were budgeted at $1,560. Mute's margin of safety ratio (MOS %) is: (Do not round intermediate calculations.) Multiple Choice 72.07%. 87.82%. 71.07%. 93.32%. 76.97%.

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