Part A and Part B

Homework Case 1 Note: Consider Parts A and B as separate and distinct problems. Part A The following information has been gathered for the maternity department of Becker Hospital for the month of Aprili. Budgeted patients 600 Budgeted nursing hours 1800 Budgeted labor rate per hour $27.00 per hour Actual patients 605 Actual nursing hours 1850 Actual labor rate per hour $25.00 per hour Original budget for nursing costs $48,600 Actual nursing costs incurred $46,250 Required: Calculate the following variances: 1. Total Variance 2. Volume Variance 3. Quantity Variance 4. Price (Labor Rate) Variance Part B Landview Orthopedics has two service departments and two operating departments. The organization allocates its Administration department costs on the basis of employee-hours and its Janitorial Service department costs on the basis of square feet occupied. The two operating departments are MRI and Physiclan Services. Information regarding all departments are in the grid below: Service Departments Operating Departments Janitorial Physician Administration Service Services Total Department $180,000 $45,000 $130,500 $344,500 $700,000 Employee hours 12,000 6,000 18,000 30,000 66,000 Square Feet utilized by the department 10,000 200 5,000 45,000 60,200 MRI Costs Required: 1. Allocate the service department costs using the direct method. 2. Allocate the service department costs using the step-down method, allocating the administration department first. 3. Allocate the service departments costs using the step-down method, allocating the janitorial service department first