The controller of Conrad Aiken Surgical Center was reviewing monthly financial reports and noted some differences. The center had fallen 8 short of its plan to perform 450 procedures during the month. Despite that shortfall, surgical revenue exceeded the $830,250 budget, coming in at $848,640. 1. Construct the flexible budget estimate for revenue, procedures, and revenue per procedure. Budgeted Flexible Actual A. Revenue 830,250 848,640 B. Procedures 450 442 C. Revenue per procedure $1,845 $1,920 2. Calculate the revenue volume variance. 3. Calculate the revenue rate variance . 4. Is the unfavorable variance caused by volume or by the rate?

The controller of Conrad Aiken Surgical Center was reviewing monthly financial reports and noted some differences. The center had fallen 8 short of its plan to perform 450 procedures during the month. Despite that shortfall, surgical revenue exceeded the $830,250 budget, coming in at $848,640. 1. Construct the flexible budget estimate for revenue, procedures, and revenue per procedure. Budgeted Flexible Actual A. Revenue 830,250 848,640 B. Procedures 450 442 C. Revenue per procedure $1,845 $1,920 2. Calculate the revenue volume variance. 3. Calculate the revenue rate variance . 4. Is the unfavorable variance caused by volume or by the rate?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 4TIF: Evaluating the budgeting system in a service company Childrens Hospital of the Kings Daughters...

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