anagement asked Jack to calculate the flexi- in an effort to De budget van nance and of that Jack is in ger variance for OR nursing costs. Given quested Budgeting and Variance Analysis to better plan for and control OR costs, SHH management asked Jace to + variance .e., flexible budget ad efficiency variance that make up the flexible budeat variance for OR nursing costs-actual costs) for OR ring costs, including the price interested in comparing the reported OR variance analysis for both the current cost ported costs of both systems he decided to prepare the to the vital signs costing k chose to use each cost system's time na hout as the OR nursing hour. Jack collected the ed the following additional information for use in prepang udget variance for both systems mber of surgeries performed 950 umber of nursing hours allowed for each OR surgery - 5 umber of OR nursing hours used 5,000 addition, Jack cost per OR exible budoor the vital signs costing system. In SR nursing hout as the standard Actual number of Standard number Actual number OR nursing costs = $190,000 1. For the OR or the OR service line, use the information mation above and the cost per OR nursing hour under the cur- rent cost system to calculate the flexible budget variance. (Hint: Use your answer to Requirement 3 as the standard cost per nursing hour for the current cost system.) b. price variance. c efficiency variance. & For the OR for the OR service line, use the information above and the cost per OR nursing hour under the vital signs cost system to calculate the flexible budget variance. (Hint: Use your answer to Requirement 6 as the standard cost per OR nursing hour for the vital signs cost system.) b. price variance. c efficiency variance. Discussion Reported Costs and Variances from the Two Systems e Consider SHH'Seed to control its skyrocketing costs, Jack's discussion with experienced nurses regarding the we of hospital resources, and the reported costs that you calculated from each cost system. Bus on these considerations, which cost system (current or vital signs) should Jack choose? Briefly xplain the reasoning behind your choice. 10. What does each of the calculated variances suggest to Jack regarding actions that he should or should not take with respect to investigating and improving each variance? Also, briefly explain why the variances differ between the two cost systems. Budgeting and Variance Analysis an effort to better plan for and control OR costs, SHH management asked Jack to calculate the flexi- ble budget variance (.e., flexible budget costs-actual costs) for OR nursing costs, including the price riance and efficiency variance that make up the flexible budget variance for OR nursing costs. Given hat Jack is interested in comparing the reported costs of both systems, he decided to prepare the equested OR variance analysis for both the current cost system and the vital signs costing system. In ddition, Jack chose to use each cost system's estimate of the cost per OR nursing hour as the standard ost per OR nursing hour. Jack collected the following additional information for use in preparing the Hexable budget variance for both systems: Actual number of surgeries performed 950 Standard number of nursing hours allowed for each OR surgery = 5 Actual number of OR nursing hours used 5,000 Actual OR nursing costs $190,000 7. For the OR service line, use the information above and the cost per OR nursing hour under the cur rent cost system to calculate the a flexible budget variance. (Hint: Use your answer to Requirement 3 as the standard cost per OR nursing hour for the current cost system.) b. price variance. c. efficiency variance. 8. For the OR service line, use the information above and the cost per OR nursing hour under the vital signs cost system to calculate the a flexible budget variance. (Hint: Use your answer to Requirement 6 as the standard cost per OR nursing hour for the vital signs cost system.) b. price variance. c. efficiency variance. Discussion of Reported Costs and Variances from the Two Systems Consider SHH's need to control its skyrocketing costs, Jack's discussion with experienced nurses regarding their use of hospital resources, and the reported costs that you calculated from each cost system. Based on these considerations, which cost system (current or vital signs) should Jack choose? Briefly explain the reasoning behind your choice. 10. What does each of the calculated variances suggest to Jack regarding actions that he should or should not take with respect to investigating and improving each variance? Also, briefly explain why the variances differ between the two cost systems. anagement asked Jack to calculate the flexi- in an effort to De budget van nance and of that Jack is in ger variance for OR nursing costs. Given quested Budgeting and Variance Analysis to better plan for and control OR costs, SHH management asked Jace to + variance .e., flexible budget ad efficiency variance that make up the flexible budeat variance for OR nursing costs-actual costs) for OR ring costs, including the price interested in comparing the reported OR variance analysis for both the current cost ported costs of both systems he decided to prepare the to the vital signs costing k chose to use each cost system's time na hout as the OR nursing hour. Jack collected the ed the following additional information for use in prepang udget variance for both systems mber of surgeries performed 950 umber of nursing hours allowed for each OR surgery - 5 umber of OR nursing hours used 5,000 addition, Jack cost per OR exible budoor the vital signs costing system. In SR nursing hout as the standard Actual number of Standard number Actual number OR nursing costs = $190,000 1. For the OR or the OR service line, use the information mation above and the cost per OR nursing hour under the cur- rent cost system to calculate the flexible budget variance. (Hint: Use your answer to Requirement 3 as the standard cost per nursing hour for the current cost system.) b. price variance. c efficiency variance. & For the OR for the OR service line, use the information above and the cost per OR nursing hour under the vital signs cost system to calculate the flexible budget variance. (Hint: Use your answer to Requirement 6 as the standard cost per OR nursing hour for the vital signs cost system.) b. price variance. c efficiency variance. Discussion Reported Costs and Variances from the Two Systems e Consider SHH'Seed to control its skyrocketing costs, Jack's discussion with experienced nurses regarding the we of hospital resources, and the reported costs that you calculated from each cost system. Bus on these considerations, which cost system (current or vital signs) should Jack choose? Briefly xplain the reasoning behind your choice. 10. What does each of the calculated variances suggest to Jack regarding actions that he should or should not take with respect to investigating and improving each variance? Also, briefly explain why the variances differ between the two cost systems. Budgeting and Variance Analysis an effort to better plan for and control OR costs, SHH management asked Jack to calculate the flexi- ble budget variance (.e., flexible budget costs-actual costs) for OR nursing costs, including the price riance and efficiency variance that make up the flexible budget variance for OR nursing costs. Given hat Jack is interested in comparing the reported costs of both systems, he decided to prepare the equested OR variance analysis for both the current cost system and the vital signs costing system. In ddition, Jack chose to use each cost system's estimate of the cost per OR nursing hour as the standard ost per OR nursing hour. Jack collected the following additional information for use in preparing the Hexable budget variance for both systems: Actual number of surgeries performed 950 Standard number of nursing hours allowed for each OR surgery = 5 Actual number of OR nursing hours used 5,000 Actual OR nursing costs $190,000 7. For the OR service line, use the information above and the cost per OR nursing hour under the cur rent cost system to calculate the a flexible budget variance. (Hint: Use your answer to Requirement 3 as the standard cost per OR nursing hour for the current cost system.) b. price variance. c. efficiency variance. 8. For the OR service line, use the information above and the cost per OR nursing hour under the vital signs cost system to calculate the a flexible budget variance. (Hint: Use your answer to Requirement 6 as the standard cost per OR nursing hour for the vital signs cost system.) b. price variance. c. efficiency variance. Discussion of Reported Costs and Variances from the Two Systems Consider SHH's need to control its skyrocketing costs, Jack's discussion with experienced nurses regarding their use of hospital resources, and the reported costs that you calculated from each cost system. Based on these considerations, which cost system (current or vital signs) should Jack choose? Briefly explain the reasoning behind your choice. 10. What does each of the calculated variances suggest to Jack regarding actions that he should or should not take with respect to investigating and improving each variance? Also, briefly explain why the variances differ between the two cost systems