Question: 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
| 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? | |||||
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