MNA ACCOUNTING - CHAPTER 8- HOMEWORK TEMPLATE Problem 8-32 Total variance = $10,000 which is favorable (unfavorable) The formats shown below are consistent with the lecture note configuration: CHECK FIGURE Cost component = Actual number of patients (Budgeted cost per patient - Actual cost per patient) $2,000 Volume component = Budgeted Cost per patient (Budgeted number of patients - Actual number of patients) (12,000) Flexible budget approach Flexed Original Total Cost Volume Actual Budget Budget Variance Component Component $50,000 $40,000 - 10 -MNA ACCOUNTING - CHAPTER 8 - HOMEWORK TEMPLATE Problem 8-33 Flu Treatment Total Flu Shots Actual $ $ $164,000 Budget $20,000 $128,000 $148,000 Variance $46,000 $ $ The formats shown below are consistent with the lecture note configuration: Total Revenue variance = $16,000 which is favorable (unfavorable) CHECK FIGURE Price component = Actual Quantity (Actual Price per patient - Budgeted Price per patient) $(28,400) Volume component = Budgeted price per patient (Actual Quantity - Budgeted Quantity 44,400 $16.000 Flexible budget approach Flexed Original Total Price or Cost Volume Actual Budget Budget Variance Component Component $164,000 $148,000 $16,000 - 11 -alialices that caused the total variance? 32. Assume that you are the nursing administrator for a medical group that expects a severe outbreak of flu this winter. You hire additional staff to treat patients and administer shots. Your special project budget was for 1,000 hours of part-time nurses' services at $40 per hour, for a total cost of $40,000. It was expected that these nurses would treat 2,000 patients. After the flu season was over, it turned out that the total spent on part-time nurses was $50,000. The nurses312 PART III Implementation and Con worked 1,200 hours and 2,600 patients were treated. Calculate the variances. Was the overall result favorable or unfavorable?favorable or unfavorable? 8-33. Using the information from Problem 8-32, assume that the nursing administrator expected 400 patients for flu shots and 1,600 for flu treatment. The medical group typically charges $50 for a flu shot and $80 for treating a flu patient. Actually, the group had 1,200 patients who received flu shots and 1,400 who had the flu and received treatment. On average, it was able to collect $55 per flu shot and $70 per flu patient. Compute the volume, mix, and price revenue variances. How did things turn out for the group considering just revenues? How did they turn out from a profit perspective? 4. Dr. Eger is a phu