You are evaluating the performance of the radiology department manager. The service unit (SU) or output for

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You are evaluating the performance of the radiology department manager. The service unit (SU) or output for this department is the number of procedures. A static budget was prepared at the beginning of the year. You are now examining that budget in relation to actual experience. The relevant data are included in TABLE 17-18.

The department manager is pleased because he has a favorable $120,000 cost variance. Evaluate the effectiveness claims of the manager using the budgetary variance model described in this chapter.

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