Mount Ranier General Hospital serves three counties in the state of Washington. The hospital is a nonprofit organization which is supported by patient billings, county and state funds, and private donations. The hospital’s organization chart follows.

The following cost information has been compiled for August.

Required:
1. Prepare a set of cost performance reports similar to Exhibit 12–4. The report should have six columns, as in Exhibit 12–4. The first four columns will have the same headings as those used above. The last two columns will have the following headings: Variance—August, and Variance—Year to Date.
Since all of the information in the performance reports for Mount Ranier General Hospital is cost information, you do not need to show these data in parentheses. Use F or U to denote whether each variance in the reports is favorable or unfavorable.
2. Using arrows show the relationships between the numbers in your performance reports for Mount Ranier General Hospital. Refer to Exhibit 12–4 for guidance.
3. Put yourself in the place of the hospital’s administrator. Which variances in the performance reports would you want to investigate further?Why?

Mount Ranier General Hospital General Medicine Division Surgical Division Medical Support Division Administrative Division Nursing Department Radiology and Laboratory Department Nutrition Department Housekeeping Department Maintenance Department Kitchen Registered Dietitians Section Food Service Section Cafeteria Patient Food Service Budget Actual August Year to Date August Year to Date Cafeteria: 16,000 9,000 2,000 800 $ 128,000 s18,000 $144,000 72,400 16,200 2,200 17,200 19,200 274,000 120,000 492,000 1,160,000 288,000 172,000 154,000 3,341,800 2,231,600 812,000 Food servers wages. Paper products.. Utilities. Maintenance Custodial. Supplies 72,000 16,000 6,400 17,600 19,200 272,000 120,000 496,000 1,120,000 288,000 160,000 208,000 3,360,000 2,240,000 800,000 8,800 2,100 200 2,200 1,800 37,000 15,000 58,800 150,000 2,400 34,000 15,000 Patient Food Service Registered Dietitians' Section Kitchen Nursing Department.. Radiology and Laboratory Department..36,000 Housekeeping Department Maintenance Department General Medicine Division Surgical Division Administrative Division 140,000 20,000 26,000 420,000 280,000 .100,000 23,200 12,000 408,000 282,000 107,000 ..