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 0.4 nurse hours per patient visit was set. Hourly pay for nurses ranges from $9 to $18 per hour, and the average pay rate is $14 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 $12 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 4,100 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 - price variance x X Data Table - Budget Actual 4,100 Variance 200 Patient visits 3,900 Nurse hours 1,560 1,730 90 $ 21,840 $ 25,915 $ 4,075 Nursing cost Supplies and other variable overhead 1,360 18,720 91,900 20,080 91,900 Fixed costs 0 $ 132,460 $ 137,895 $ Total cost 5,435