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Company: PQR Healthcare Solutions Managerial Accounting Process: Cost Variance Analysis Cost Category Budgeted Amount ($ million) Actual Amount ($ million) Medical Supplies 25 30 Salaries
Company: PQR Healthcare Solutions
Managerial Accounting Process: Cost Variance Analysis
Cost Category | Budgeted Amount ($ million) | Actual Amount ($ million) |
Medical Supplies | 25 | 30 |
Salaries | 50 | 45 |
Administrative | 10 | 12 |
Facility Maintenance | 15 | 18 |
Requirements:
- Variance Analysis:
- Calculate the total variance and the price and efficiency variances for each cost category at PQR Healthcare Solutions.
- Flexible Budgeting:
- Prepare a flexible budget for PQR Healthcare Solutions based on the actual activity level, assuming a 10% increase in patient visits from the budgeted level.
- Performance Evaluation:
- Evaluate the performance of each department at PQR Healthcare Solutions based on the variances identified in the cost variance analysis.
- Cost Control Measures:
- Recommend two cost control measures that PQR Healthcare Solutions could implement to reduce the overall cost variances identified.
- Strategic Cost Management:
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