Question

In: Economics

. Given the following monthly expense report for EKGs calculate price, efficiency, intensity, and quantity variances...

. Given the following monthly expense report for EKGs calculate price, efficiency, intensity, and quantity variances for each object code. Second write an explanation for why expenses differ from budget, one paragraph per expense line and create a table similar to table 11.4. Discuss how much of these variances the manager may be responsible for.

Obj.Code

Expenses

Actual

Budget

$ Diff

% Diff

4020

Staff Salaries

$77,619

$75,000

$2,619

3.49%

4212

Medical Supplies

$11,452

$11,875

-$423

-3.56%

4350

Biomedical Repair/Maint.

$6,539

$3,200

$3,339

104.34%

4410

Electricity

$1,187

$1,303

-$116

-8.87%

Total

$96,797

$91,378

$5,420

5.93%

Statistics

Actual

Budget

$ Diff

% Diff

Admissions (output)

975

1,000

-25

-2.50%

Billed EKGs (activity)

1,247

1,250

-3

-0.24%

Input Units

Staff Salaries (hours paid)

1,186

1,250

-64

-5.12%

Medical Supplies (electrodes)

2,580

2,500

80

3.20%

Biomedical Repair/Maint. (service hours)

150

100

50

50.00%

Electricity (kilowatt hours)

13,897

12,399

1,498

12.08%

Solutions

Expert Solution

Rahul Sunny answered 2 years ago
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