Using the following performance data, calculate the volume adjusted labor rate variance and volume adjusted efficiency...
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Using the following performance data, calculate the volume adjusted labor rate variance and volume adjusted efficiency variance. The department is considered 30% variable. Salaries Payroll Hours Service Volume Actual $470,500 22,500 392,000 Budget $477,750 21,000 390,000 Problem 2 You are examining a proposal for a new business opportunity. A new procedure can be offered at a price of $1,000. The collection rate is expected to be 75%. Demand is anticipated to be 1,000 units in year one, growing by 25% each year thereafter until the end of year five. Each procedure consumes $450 of supplies. Salaries are estimated to be $52,000 a year each for 11 FTEs plus an additional 20% for fringe benefits. Fixed operating costs are $8,000 per month and annual rent is $20,000/year. Develop a marginal P&L for this business opportunity. Based on that P&L, would you pursue this opportunity? Using the following performance data, calculate the volume adjusted labor rate variance and volume adjusted efficiency variance. The department is considered 30% variable. Salaries Payroll Hours Service Volume Actual $470,500 22,500 392,000 Budget $477,750 21,000 390,000 Problem 2 You are examining a proposal for a new business opportunity. A new procedure can be offered at a price of $1,000. The collection rate is expected to be 75%. Demand is anticipated to be 1,000 units in year one, growing by 25% each year thereafter until the end of year five. Each procedure consumes $450 of supplies. Salaries are estimated to be $52,000 a year each for 11 FTEs plus an additional 20% for fringe benefits. Fixed operating costs are $8,000 per month and annual rent is $20,000/year. Develop a marginal P&L for this business opportunity. Based on that P&L, would you pursue this opportunity?
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Volume Adjusted Labor Rate Variance Actual Hours Budget Hours Budget Rate Variable Rate Percentage 2... View the full answer
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
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