Question
Price, Quantity, and Volume Variances. Your operating room (OR) expects to have an unusually high number of operations for kidney transplants this year. You decide
Price, Quantity, and Volume Variances.Your operating room (OR) expects to have an
unusually high number of operations for kidney transplants this year. You decide to hire extra
part-time nurses to help out. You plan to pay $18,750 for these nurses. You expect to pay these
nurses for 750 hours, and you are expecting 150 operations. You actually paid an average of
$27 per hour for 680 hours. There actually were 135 operations.
For which of the following is itbadfor the OR to have afavorablevariance?
a. Price variance
b. Quantity variance
c. Volume variance
d. None of the above
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