Homework Problem \#2 Here are the budgets of ABC Surgery Center for the most recent quarter (in thousands of dollars): The center assumes that all revenues and costs are variable and hence tied directly to patient volume. Answer the questions on the next slide. Homework Problem \#2 Continued 1. Explain how each amount in the flexible budget was calculated (Hint: Examine the static budget to determine the relationship of each budget line to volume) 2. Using the static budget, determine the variances for each line (both in dollars and percentages) and explain them. 3. What do the financial results tell the management of ABC Surgery Center? Homework Problem \#2 Here are the budgets of ABC Surgery Center for the most recent quarter (in thousands of dollars): The center assumes that all revenues and costs are variable and hence tied directly to patient volume. Answer the questions on the next slide. Homework Problem \#2 Continued 1. Explain how each amount in the flexible budget was calculated (Hint: Examine the static budget to determine the relationship of each budget line to volume) 2. Using the static budget, determine the variances for each line (both in dollars and percentages) and explain them. 3. What do the financial results tell the management of ABC Surgery Center