Variance Analysis Exercise.xlsx = fe Exercise A Exercise A Exercise B Exercise C
ID: 2781738 • Letter: V
Question
Variance Analysis Exercise.xlsx = fe Exercise A Exercise A Exercise B Exercise C CATEGORY PLANNED ACTUAL 4 Surgical Volume 1400 $15,000 500,500$750,750 $17,000 1200 5 Durable Medical Equipment Revenu $12,000 6 Surgery Revenue 7 Parking Revenue $15,000 9 Instructions: 101. Determine the total variance between the planned and actual budgets. 11 2. Determine the service-related revenues and calculate variance still unexplain 12 3. Prepare a flexible budget estimate. Present side-by side the budget, flexible 13 4. Determine what variance is due to change in volume and what variance is du 145. Determine the volume variance and rate variance based on per unit rates.Explanation / Answer
Solution:
1) Determining the Total Variance Between the Planned and Actual Budgets:
2) Determining the Service Related Revenues and Calculation of the Variance Still Unexplained:
3) Preparing a Flexible Budget Estimate:
4) Determining what Variance is Due to Change in Volume and What Variance is Due to Change in Rate:
5) Determining the Volume Variance and Rate Variance Based on Per Unit Rates:
Given Planned Actual (A) Surgical volume 1,200 1,400 (B) Durable medical equipment revenues $12,000 $15,000 (C) Surgery revenues $500,500 $750,750 (D) Parking revenues $15,000 $17,000Related Questions
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