1) The following profit information was taken from Eastside Hospital's budget data: Simple budget$1,200,000 Flexible budget$1,000,000 Actual results$ 500,000 What is the simple profit variance? (Hint: An unfavorable variance is identified by a minus sign.)

-$200,000 $500,000 -$500,000 $700,000 -$700,000

2)

The following profit information was taken from Eastside Hospital's budget data: Simple budget$1,200,000 Flexible budget$1,000,000 Actual results$ 500,000 What is the flexible profit variance? (Hint: An unfavorable variance is identified by a minus sign.)

-$200,000 -$700,000 $500,000 $700,00 -$500,000