Question
An-Nur Hospital uses patient-visits as its measure of activity. The hospital has provided the following report: An-Nur Hospital (Comparison of Static Budget to Actual Results
An-Nur Hospital uses patient-visits as its measure of activity. The hospital has provided the following report:
An-Nur Hospital (Comparison of Static Budget to Actual Results For the month ended 30 June 2020)
Static Budget | Actual Results | Variances | |
Patient-visits | 2,600 | 2,700 | |
RM | RM | RM | |
Revenues (RM52.90/patient) | 137,540 | 145,190 | 7,650F |
Expenses: | |||
Personal expenses (RM35,100 + RM17.40/patient) | 80,340 | 79,610 | 730F |
Medical supplies (RM1,100 + RM6.40/patient) | 17,740 | 18,660 | 920U |
Occupancy expenses (RM9,700 + RM2.30/patient) | 15,680 | 16,680 | 1,000U |
Administrative expenses (RM5,200 + RM0.30/patient) | 5,980 | 5,880 | 100F |
Total expense | 119,740 | 120,830 | 1,090U |
Net operating income | 17,800 | 24,360 | 6,560F |
Required:
- Prepare the An-Nurs flexible budget performance report for June 2020. Label each variance as favorable (F) and unfavorable (U)
- Give your comment on the managements efficiency in controlling the cost.
- Recommend the course of action(s) to management of An-Nur Hospital.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started