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The Orthopedic unit treats bone diseases and injuries, including fractures and associated bone ligament and tendon damage. The Orthopedic unit currently has 4 0 hospital
The Orthopedic unit treats bone diseases and injuries, including fractures and associated bone ligament and tendon damage. The Orthopedic unit currently has hospital beds available for patients who are being treated for both medical and surgical conditions.Patients are admitted either directly from the Emergency unit or from home as elective orthopedic patients. The two most common orthopedic procedures include: knee replacements and hip replacements.The accounting department at CityCare Centre Hospital is responsible for comparing the actual volumes and hospital costs against the budget. You were recently hired to join the accounting department and have been asked to help the Director of Orthopedics a senior surgeon with the Orthopedic unit's budget analysis.The Director of Orthopedics shared with you that patient demand for orthopedic procedures has been continually high due to the aging population, and there are long waiting lists for surgeries. You have been provided with the most recent year's Orthopedic unit budget and the actual results for performance comparisons associated with their two main types of procedures: hip replacements and knee replacements. Aboveaverage financialThe data for the Orthopedic unit see separate Excel file shows that overall budgeted income for the Orthopedic unit was $ While the actual income was much lower than anticipated, actual patient volumes were higher than anticipated. This finding is incredibly alarming to Director of Orthopedics, and you have been asked to investigate thecauses of the income deficit.The expected total patient volume for both hip and knee surgeries across all major hospital providers in the region was for the year. The actual total patient volume for the combined hip and knee surgeries across all major hospital service providers in the region was patients. This market data will allow you to compare CityCare Centre Hospital'sOrthopedic unit performance with other hospital service providers in the government funded region.Required: Prepare the flexible budget for the CityCare Centre Hospital's Orthopedic unit.Calculate the static budget variance, flexible budget variance, and planning volume variance. marks For each of the following, calculate the pricerate variance and the quantityefficiency variance marks a Direct labour Doctors for hip surgeries b Direct labour Nurses for hip surgeriesC.Direct materials for hip surgeriesd.Direct labour Doctors for knee surgeriese. Direct labour nurses for knee surgeriesf. Direct materials for knee surgeries Calculate the following variances and provide a detailed explanation for each as to what the results mean for the CityCare Centre Hospital's Orthopedic unit ie what is causing each favourable or unfavourable variance to occur marks:aMarket size varianceb.Market share varianceC.Surgical procedure mix variances for knee and hip surgeriesD. Surgical procedure quantity variances for knee and hip surgeries
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