Detailed variance analysis: The following are the planned and actual revenues for Cutting Edge Surgery Center. Because it is one of four surgery centers in the community, the administrator is concerned about it$$s rates in relation to the rates of it$$s competitors.

Givens:

$-$ Surgical volume: Planned $3500$ and Actual $3700.$

$-$ Gift shop revenues: Planned $$20000$ and Actual $$21000.$

$-$ Surgery revenues: Planned $$700500$ and Actual $$950750.$

$-$ Parking revenues: Planned $$18000$ and Actual $$20000.$

a$.$ Determine the total variance between the planned and actual budgets.

b$.$ Determine the service$-$related revenues and calculate service$-$related variance still unexplained.

c$.$ Prepare a flexible budget estimate. Present side by side the budget, flexible budget estimate, and actual surgical revenues $($and related volumes$).$

d$.$ Determine what variance is due to change in volume and what variance is due to change in rates.

e$.$ Determine the volume variance and rate variance based on per unit rates.