The county hospital is the only medical facility serving an area with a population of 8400. In 20x1 the radiology department purchased a used CAT scaner from a large hospital for $50,000. The purchase has not been anticipated when the department's 20x1 budget was drawn up, and the repair costs for the machine was $7,300 more than expected $40,300. There were 680 scans performed rather than the 600 budgeted, and revenue was $300 less per scan than the $2,600 expected. During that period, additional temporary staf had been used, which increased the variable costs per scan from $275 budgeted to an unexpected $475 per scan. Non-variable scpenses were budgeted at $40,300, and the repairs were the only variance.

Questions:

a. Is the non-variable espense variance favorable or unfavorable? what is the amount?

b. What is the unexplained cost-related variance?

c. Create a flexile budget for revenue

d. what is the revenue rate variance? Is it favorable or unfavorable? what is the volume variance? is it favorable or unfavorable?

e. Create a flexible budget for the variable cost

f. what is the cost variance? is it favorable or unfavorable? what is teh volume variance due to cost? is it favorable or unfavorable?