Variance Analysis

Suture Self is a health care service firm which provides health care services and education. In January of 2017, Mrs. Terry, a philanthropist, paid for all of Suture Self's rent for the year, which had previously been their only fixed cost (i.e. FOH is ignored in this question. Yay.). In order to demonstrate all the karma Mrs. Terry had garnered, Suture Self started tracking their costs in order to observe and hopefully improve their operations. In February (which has 28 days, for the record), the 10 full time employees recorded the following costs per day:

Costs and activity in February Cost per day Direct materials (gauze, sutures, etc.) @ 250$/patient $50,000 / day Number of patients 200 patients / day Direct Labor ($20 I hour @ 80 hrs / day) $1,600 / day Variable Overhead {how-to-sew pamphlets, etc.) @ $50 / patient $10,000 I day Costs and activity in March Total cost for March Direct materials $1,500,000 Number of patients 6200 patients Direct Labor $55,000 Total Direct Labor Hours 2500 hours Variable Overhead $321,000