6.2 Following are the budgets of Brandon Surgery Center for the most recent historical quarter (in thousands of dollars):

Simple Flexible Actual

Number of surgeries 1,200 1,300 1,300

Patient revenue $2,400 $2,600 $2,535

Salary expense $1,200 $1,300 $1,365

Nonsalary expense $600 $650 $585

Profit $600 $650 $585

The center assumes that all revenues and costs are variable and hence tied directly to patient volume.

• Explain how each amount in the flexible budget was calculated. (Hint: Examine the simple budget to determine the relationship of each budget line to volume.)

Determine the variances for each line of the P&L statement, both in dollar terms and in percentage terms.What do the results in part b tells Brandons managers about the centers operations for the quarter? 6.2 Following are the budgets of Brandon Surgery Center for the most recent historical quarter (in thousands of dollars): Simple Flexible Actual Number of surgeries 1,200 1,300 1,300 Patient revenue $2,400 $2,600 $2,535 Salary expense $1,200 $1,300 $1,365 Nonsalary expense $600 $650 $585 Profit $600 $650 $585 The center assumes that all revenues and costs are variable and hence tied directly to patient volume. a. Explain how each amount in the flexible budget was calculated. (Hint: Examine the simple budget to determine the relationship of each budget line to volume.) b. Determine the variances for each line of the P&L statement, both in dollar terms and in percentage terms. c. What do the results in part b tells Brandon's managers about the center's operations for the quarter