file:///C:/Users/ching/Downloads/ContentServer.pdf

4. Using the information provided in the case: (calculation steps are required)

a. Calculate the flexible budget for the St George Hospital Orthopedic Unit.

b. Identify the following efficiency and effectiveness variances and explain what these results mean for the St George Hospital Orthopedic Unit:

i. Total sales variance for funds received;

ii. Total variable cost variance;

iii. Total fixed cost variance;

and iv. Total volume variance.

c. Calculate the following effectiveness variances and explain what these results mean for the St George Hospital Orthopedic Unit: i. Market size variance;

ii. Market share variance; and

iii. Patient mix variance