Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Budgets are a basic management tool used to tie its planning activities to its operating activities. Budgets are important for communicating goals and expectations throughout

Budgets are a basic management tool used to tie its planning activities to its operating activities. Budgets are important for communicating goals and expectations throughout the organization.

In this assignment, you will prepare static and flexible budgets. You will also perform variance analysis to identify budget to actual differences, and the causes of those variances.

Provided in the table below is information for Apple Hospital's Inpatient Unit #4 for the month of May. The information provided includes whether the costs are fixed (F) or variable (V). Use this information to:

a)Prepare a flexible budget for Unit #4 for the month of May

b)Calculate the cost variance for each expense and in total

c)Calculate the volume variance for each expense and in total

d)Calculate the management variance for each expense and in total

image text in transcribed
Inpatient Unit #4 Budget Actual Variance Patient Days 810 855 45 Expenses Salaries and Wages V $2,594,322 $ 2,612,823 $(18,501) Benefits V 518,864 520,744 (1,880) Supplies V 56,700 71.290 (14,590) Lease Expense F 20,000 20,800 (800) Depreciation F 10,000 9.940 60 $ 3,199,887 $3,235,597 (35,710)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Tools For Business Decision Making

Authors: Paul D. Kimmel,  Jerry J. Weygandt,  Jill E. Mitchell

10th Edition

1119791081, 978-1119791089

More Books

Students also viewed these Accounting questions

Question

f. How do you apply for the position?

Answered: 1 week ago

Question

1. Background knowledge of the subject and

Answered: 1 week ago