Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 12 Jun 2017 My Price 11.00

budgets of Brandon Surgery Center

Here are the budgets of Brandon Surgery Center for the most recent historical quarter (in thousands of dollars):

Static Flexible Actual

Number of surgeries 1,200 1,3001,300

Patient revenue $2,400 $2,600 $2,535

Salary expense $1,200 $1,000 $1,365

Non salary expense $ 600$ 650$ 585

Profit $ 600$ 650$ 585

The center assumes that all revenues and costs are variable and hence tied directly to patient volume.

a. Explain how each amount in the flexible budget was calculated.

b. Determine the variance for each line of the profit and loss statement in both dollar terms and percentage terms (Each line has a total variance, a volume variance, and a price variance [for revenues] and management variances [for expenses].

c. What do the part b results tell Brandon’s managers about the surgery centers operations for the quarter?

Answers

Maurice Tutor
(5)
Status NEW Posted 12 Jun 2017 11:06 AM My Price 11.00

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