Question
The following are budgeted and actual revenues and expenses of a hospital. Budgeted Actual Revenues: Surgical Volume 2,300 2,700 Gift Shop Revenues $19,000 $22,000 Surgery
The following are budgeted and actual revenues and expenses of a hospital.
Budgeted Actual
Revenues:
Surgical Volume 2,300 2,700
Gift Shop Revenues $19,000 $22,000
Surgery Revenues $600,500 $569,325
Parking Revenues $14,600 $9,600
Expenses:
Patients Days 27,000 26,650
Pharmacy $120,000 $160,000
Misc Supplies $66,000 $59,000
Fixed Overhead Costs $808,000 $880,000
You need to:
1. Determine the total variance between the planned and actual budgets for Surgical Volume. Is the variance favorable or unfavorable?
2. Determine the total variance between the planned and actual budgets for Patient Days. Is the variance favorable or unfavorable?
3. Determine the service-related variance for Surgical Volume.
4. Determine the service-related variance for Patient Days.
5. Prepare a flexible budget estimate. Present a side-by-side budget, flexible budget estimate, and the actual Surgical Revenues.
6. Prepare a flexible budget estimate. Present a side-by-side budget, flexible budget estimate, and the actual Patient Expenses.
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