Effectiveness/efficiency; ethics; writing Top management of Capital Services observed that the budget for the EDP department had been growing far beyond what was anticipated for the past several years. Each year, the EDP manager would demonstrate that increased usage by the companys non-EDP departments would justify a larger appropriation. The administrative vice president commented that she was not surprised because user departments were not charged for the EDP department services, and EDP department personnel were creative and eager to continue expanding services. A review of the current year's statistics of the EDP department revealed the following:

Budgetary appropriation $1,600,000 based on 3,200 hours of run time. $1,280,000 of this appropriation is related to fixed costs. Actual department expenses Variable: $296,400 (incurred for 3,120 hours of run time). Fixed: $1,304,000.

a. Did the EDP manager stay within his appropriation?

Appropriation	Answer
Actual cost	Answer
Under(Above) Budget	Answer

b. What was the EDP department's degree of effectiveness? Note: Round your answer to two decimal places. Answer

c. Was the EDP department efficient? Treat variable and fixed expenses separately. Note: Round your answers to the nearest whole dollar. Actual efficiency of variable expenses $Answer

per hour Planned efficiency of variable expenses $Answer

per hour Actual efficiency of fixed expenses $Answer

per hour Planned efficiency of fixed expenses $Answer

per hour Was the EDP department efficient regarding variable expenses compared to plan? Answer

Was the EDP department efficient regarding fixed expenses compared to plan? Answer

d. Using the formulas for analyzing variable and fixed costs, calculate the variances incurred by the EDP department. Note: Do not use negative signs with your answers. Variable spending variance $Answer

Answer

Variable efficiency variance $Answer

Answer

Variable total variance $Answer

Answer

Fixed spending variance $Answer

Answer

Fixed volume variance $Answer

Answer

Fixed total variance $Answer

Answer