Question
In: Accounting
6 Consider the following data from the past year for the BSU General Hospital Static Flexible...
| 6 | ||||||||
| Consider the following data from the past year for the BSU General Hospital | ||||||||
| Static | Flexible | Actual | ||||||
| Budget | Budget | Results | ||||||
| Revenues | 9,400,000 | 9,200,000 | 9,100,000 | |||||
| Costs | 5,200,000 | 5,300,000 | 5,500,000 | |||||
| Profits | ? | ? | ? | |||||
| a) | Calculate and interpret the profit variance | |||||||
| b) | Calculate and interpret the revenue variance | |||||||
| c) | Calculate and interpret the cost variance | |||||||
| d) | Calculate and interpret the volume and price variances on revenue side | |||||||
| e) | Calculate and interpret the volume and management variances on cost side | |||||||
| f) | How are the variances calculated above related? | |||||||
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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Barbara Flynn is in charge of maintaining hospital supplies at General Hospital. During the past year, the mean lead time demand for bandage BX-5 was 65. Furthermore, the standard deviation for BX-5 was 7. Ms. Flynn would like to maintain a 95% service level. z=1.65
a) What safety stock level do you recommend for BX-5?
Safety Stock=___ units
b) What is the appropiate reorder point?
Reorder point = ___units
Consider the following 2016 data for Newark Hospital (in millions of dollars) Simple Budget Flexible Budget...
Consider the following 2016 data for Newark Hospital (in
millions of dollars)
Simple Budget
Flexible Budget
Actual Results
Revenues
$4.7
$4.8
$4.5
Costs
4.1
4.1
4.2
Profit
0.6
0.7
0.3
a. Calculate and interpret the two profit variances
b. Calculate and interpret the two revenue variances.
c. Calculate and interpret the two cost variances.
d. how are the variances related
Answer a-d.
Static and Flexible Budgets Graham Corporation used the following data to evaluate its current operating system....
Static and Flexible Budgets Graham Corporation used the
following data to evaluate its current operating system.
The company sells items for $10 each and used a budgeted selling
price of $10 per unit. Actual Budgeted Units sold 1,482,000
1,500,000 Variable costs 2,815,000 3,000,000 Fixed costs 2,490,000
2,425,000 a. Prepare the actual income statement, flexible budget,
and static budget. Do not use negative signs with any of your
answers below. Actual Results Flexible Budget Static Budget Units
sold Answer Answer Answer...
Static and Flexible Budgets Graham Corporation used the following data to evaluate its current operating system....
Static and Flexible Budgets
Graham Corporation used the following data to evaluate its current
operating system. The company sells items for $10 each and used a
budgeted selling price of $10 per unit.
Actual
Budgeted
Units sold
991,000
1,000,000
Variable costs
1,280,000
1,500,000
Fixed costs
955,000
905,000
a. Prepare the actual income statement, flexible budget, and
static budget.
Do not use negative signs with any of your answers below.
Actual Results
Flexible Budget
Static Budget
Units sold
Answer
Answer
Answer...
Static and Flexible Budgets Graham Corporation used the following data to evaluate its current operating system....
Static and Flexible Budgets
Graham Corporation used the following data to evaluate its current
operating system. The company sells items for $10 each and used a
budgeted selling price of $10 per unit.
Actual
Budgeted
Units sold
794,000
800,000
Variable costs
1,745,000
2,000,000
Fixed costs
1,420,000
1,375,000
a. Prepare the actual income statement, flexible budget, and
static budget.
Do not use negative signs with any of your answers below.
Actual Results
Flexible Budget
Static Budget
Units sold
Answer
Answer
Answer...
The following data were drawn from the records of Campbell Corporation. Planned volume for year (static...
The following data were drawn from the records of Campbell
Corporation.
Planned volume for year (static
budget)
3,900
units
Standard direct materials cost
per unit
3.60
pounds
@
$
2.00
per pound
Standard direct labor cost per
unit
2.80
hours
@
$
4.00
per hour
Total expected fixed overhead
costs
$
21,840
Actual volume for the year
(flexible budget)
4,200
units
Actual direct materials cost per
unit
3.00
pounds
@
$
2.30
per pound
Actual direct labor cost per
unit...
The following data were drawn from the records of Campbell Corporation. Planned volume for year (static...
The following data were drawn from the records of Campbell
Corporation.
Planned volume for year (static
budget)
4,100
units
Standard direct materials cost
per unit
3.20
pounds
@
$
1.20
per pound
Standard direct labor cost per
unit
3.00
hours
@
$
3.90
per hour
Total expected fixed overhead
costs
$
17,630
Actual volume for the year
(flexible budget)
4,300
units
Actual direct materials cost per
unit
2.60
pounds
@
$
1.60
per pound
Actual direct labor cost per
unit...
The following data were drawn from the records of Perez Corporation. Planned volume for year (static...
The following data were drawn from the records of Perez
Corporation.
Planned volume for year (static budget)
3,000
units
Standard direct materials cost per unit
2.30
pounds
@
$
1.60
per pound
Standard direct labor cost per unit
2.20
hours
@
$
3.50
per hour
Total expected fixed overhead costs
$
13,200
Actual volume for the year (flexible budget)
3,200
units
Actual direct materials cost per unit
1.80
pounds
@
$
2.20
per pound
Actual direct labor cost per unit...
The following data were drawn from the records of Quentin Corporation: Planned volume for year (static...
The following data were drawn from the records of Quentin
Corporation:
Planned volume for year (static budget): 6000
Standard direct labor materials cost per unit: 3.1 pounds @
$3.00 per pound
Standard direct labor cost per unit: 2 hours @ $8.00 per
hour
Total expected fixed overhead costs: $56400
Actual volume for the year (flexible budget): 6300 units
Actual direct materials cost per unit: 2.7 pounds @ $4.00 per
pound
Actual direct labor cost per unit: 2.3 hours @$7.20 per...
The following data were drawn from the records of Finch Corporation. Planned volume for year (static...
The following data were drawn from the records of Finch
Corporation.
Planned volume for year (static budget)
4,700
units
Standard direct materials cost per unit
2.40
pounds
@
$
1.70
per pound
Standard direct labor cost per unit
2.80
hours
@
$
3.40
per hour
Total expected fixed overhead costs
$
23,970
Actual volume for the year (flexible budget)
5,100
units
Actual direct materials cost per unit
2.10
pounds
@
$
2.30
per pound
Actual direct labor cost per unit...
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