q.24

Here are the budgets of North Rock Ambulatory Care Facility for the most recent historical quarter:

StaticFlexibleActualNumber of surgeries1,5001,8001,800Patient revenue$3,000,000$3,600,000$3,200,000Salary expense$1,600,000$1,920,000$2,100,000Nonsalary expense$750,000$800,000$825,000Profit$650,000$880,000$275,000

Determine the Management Variance and interpret the result.

a. The management variance is $205,000 which was driven by higher volume which positively expense items.

b. The management variance is -$180,000 which was driven by higher unit prices of expense items.

c. The management variance is -$25,000 which was driven by higher unit prices of expense items.

d. The management variance is -$205,000 which was driven by higher unit prices of expense items.