The emergency room at Yarmouth General Hospital uses a flexible budget based on patients seen as the measure of activity. The hospital must maintain an adequate staff of attending and on-call physicians at all times so patient activity does not affect physician scheduling. Nurse scheduling varies as volume changes, however. A standard of 0.6 nurse hours per patient visit was set. Hourly pay for nurses ranges from $9 to $18 per hour, and the average pay rate is $12 per hour. The hospital considers all materials to be supplies, a part of overhead; there are no direct materials. A statistical study showed that the cost of supplies and other variable overhead is more closely associated with nurse-hours than with patient visits. The standard for supplies and other variable overhead is $13 per nurse hour. The head physician of the emergency room unit, Brad Burke, is responsible for control of costs. During October the emergency room unit treated 3,000 patients. The budget and actual costs were as follows: (Click the icon to view the budget and actual costs.) Read the requirements. Requirement 1. Calculate the price and quantity variances for nursing costs. Begin by calculating the price variance. First enter the formula, then compute the variance. Be sure to label the variance as favorable (F) or unfavorable (U). Nursing 1 price variance Requirements ) = 1. 2. Calculate price and quantity variances for nursing costs. Calculate spending and efficiency variances for supplies and other variable overhead The hospital's chief administrator has asked Dr. Burke to explain the variances. Provide possible explanations. 3. Print Done Actual Variance Budget 2,900 Patient visits 3,000 100 1,740 1,890 90 20,880 $ $ 3,123 Nurse hours Nursing cost Supplies and other variable overhead Fixed costs 22,620 91,900 135,400 24,003 24,000 91,900 139,903 1,380 0 $ $ $ Total cost 4,503 Print Done