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The administrator of Appomattox Nursing Home is very aware of needing to keep his cost down since he just negotiated a new arrangement with a

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The administrator of Appomattox Nursing Home is very aware of needing to keep his cost down since he just negotiated a new arrangement with a large insurance company that will pay him a fixed amount per patient day. Listed below are budgeted and actual expenses for the previous month. Actual patient days were 30,000 compared to budgeted patient days of 24,000 . 1. What is the total volume variance for patient days? Is this variance favorable or unfavorable? Why? 2. What dollar amount is the total variance for pharmacy? Is this variance favorable or unfavorable? Why? 3. What dollar amount is the total variance for miscellaneous supplies? Is this variance favorable or unfavorable? Why? 4. What dollar amount is the total variance for pharmacy? Is this variance favorable or unfavorable? Why? 5. What dollar amount is the total variance for fixed overhead costs? Is this variance favorable or unfavorable? Why? 6. Prepare a flexible budget of expense at 30,000 patient days. 7. Determine the "Spending Variance" which is defined as Actual costs less costs budgeted at actual volume. Is this variance favorable or unfavorable? Why

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