Variance Analysis: Below is the monthly accounting report for the radiology depa
ID: 368913 • Letter: V
Question
Variance Analysis: Below is the monthly accounting report for the radiology department, calculate the price, efficiency, intensity and volume variances and provide a written evaluation of its performance.
Expense Actual Budget $ Variance % Variance
Fixed Labor $11,000 $10,000 $1,000 10%
Variable Labor 116,000 100,000 16,000 16%
Supplies 38,000 30,000 8,000 27%
Professional Fees 94,000 100,000 <6,000> <6%>
Depreciation 10,000 10,000 0 0%
---------- ----------- ----------- ------
Total $269,000 $250,000 $19,000 8%
Output: # of patients 2,100 2,000 100 5%
Service: X-Rays 5,100 5,000 100 2%
Inputs
Fixed Labor Hours 320 320 0 0%
Variable Labor Hours 2,800 2,500 300 12%
Films Used 6,048 5,000 1,048 21%
X-rays Interpreted 5,040 5,040 0 0%
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Expense Price Efficiency Intensity Volume
Fixed Labor _______ ______ _______ _______
Variable Labor _______ ______ _______ _______
Supplies _______ ______ _______ _______
Professional Fees _______ ______ _______ _______
Depreciation _______ ______ _______ _______
Total _______ ______ _______ _______
Explanation / Answer
Step 1:
Then use the formulae to :
The take the difference of Actual Vs Budgeted
Expense Actual Budget Variance % Var Fixed Labor 11000 10000 1000 10% Variable Labor 116000 100000 16000 16% Supplies 38000 30000 8000 27% Prof Fees 94000 100000 -6000 -6% Depreciation 10000 10000 0 0% Total 269000 250000 19000 8%Related Questions
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