A clinic at unniversity is run as a profit center. The dean of student services was reviewing the expenses on last month's financial report for the clinic, which also treated non-students on a fee-forservice basis. During the month the buildings furnace needed to be replaced, and the non-student department of the clinic was charged $400 for its share in addition to its normal fixed overhead assessment, which was $800. The dean was concerned because actual departmental expenses exceed budget but then noticed that 250 non-student patients had been treated, compared to a budget estimate of 150. and costs to serve the patients per unit were 10 percent below the $85.00 budgeted.

Questions:

a. How much was the total expenses variance? Was it favorable or unfavorable?

b. what was the variance for the variable costs? was it favorable or unfavorable?

c. what was the flexible budget estimate?

d. what was the volume variance for the patient costs? the cost variance for patient costs?