ou have been asked by management to explain variances in cost under inpatient capitated contract. the intensity of care delivered dropped from a budgeted case mix of 0.90 to an actual case mis of 0.85. what dollar effect did this have on actual cost. cost per case increased 4900 from budgeted value of 4750. this increased actual total cost by what amount? budget actual inpatient cost 12,568,500 16618350 members 4200 4200 admission rate 0.07 0.095 case mix index 0.9 0.85 cost per case (CMI = 1.0) 4750 4900

ou have been asked by management to explain variances in cost under inpatient capitated contract. the intensity of care delivered dropped from a budgeted case mix of 0.90 to an actual case mis of 0.85. what dollar effect did this have on actual cost. cost per case increased 4900 from budgeted value of 4750. this increased actual total cost by what amount? budget actual inpatient cost 12,568,500 16618350 members 4200 4200 admission rate 0.07 0.095 case mix index 0.9 0.85 cost per case (CMI = 1.0) 4750 4900

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 5MCQ: In the cost formula, the term 12,000 a. is the variable rate. b. is the dependent variable. c. is...

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you have been asked to explain variances in cost under inpatient capitated contract. 1. what dollar amount of the toal variance is attributed to enrolment variance. what dollar affect did the increased admission rate have on cost? budget actual inpatient cost 12,568,500 16618350 members 4200 4200 admission rate 0.07 0.095 case mix index 0.9 0.85 cost per case (CMI = 1.0) 4750 4900
The performance report for taxi # 52 from Co. Teri’s Taxi Service is as follows: Expenditure Current Budget VariantWages $ 2,000 $ 1,800 $ 200 FGasoline $ 300 $ 270 $ 30 FMaintenance $ 200 $ 400 $ 200 UInsurance $ 100 $ 110 $ 10 UTotal $ 2,600 $ 2,580 $ 20 F (U) Unfavorable (F) FavorableBased on this information, what is the possible reason (or reasons) for the variance in the driver's wages: a. A new driver was assigned to drive taxi # 52 on January 5, replacing one who retired after 30 years. b. The taxi was undergoing maintenance and repairs for several days. c. Business was slow, so taxi # 52 was stopped for 2 days. d. All of the above may be possible reasons.
As part of her annual review of her company’s budgets versus actuals, Mary Gerard isolates unfavorable variances with the hope of getting a better understanding of what caused them and how to avoid them next year. The variable overhead efficiency variance was the most unfavorable over the previous year, which Gerard will specifically be able to trace to: a. Actual overhead costs below applied overhead costs. b. Actual production units below budgeted production units. c. Standard direct labor hours below actual direct labor hours. d. The standard variable overhead rate below the actual variable overhead rate.
Last year, a department's standard costing system reported an unfavorablevariable overhead spending variance and an unfavorable volume variance. Thedenominator activity level selected for allocating overhead to the product wasbased on 80% of capacity. If 100% of capacity had been selected instead as thedenominator level, how would the reported unfavorable spending and volumevariances be affected respectively? A. increase, inchangedB. increased , increasedC. unchanged, increasedD. unchanged, unchanged
The following are planned and actual revenues for Cutting Edge Surgery Center. Because they are one of four surgery centers in the community, the administrator is concerned with his rates in relation to those of his competitors. Givens: Budgeteda Actual Surgical volume 1,500 1,700 Gift shop revenues $15,000 $17,000 Surgery revenues $500,500 $750,750 Parking revenues $15,000 $17,000 Determine the total variance between the planned and actual budgets. Prepare a flexible budget estimate for surgical volume;surgical revenue per unit and surgical revenue Determine the volume variance for surgical revenues and the rate variance for surgical revenues Determine the per unit rate variance for surgical revenue
Top managers of Cole Industries predicted 2018 sales of 14,600 units of its product at a unit price of $7.00. Actual sales for the year were 14,000 units at $10.50 each. Variable costs were budgeted at $2.60 per unit, and actual variable costs were $2.70 per unit. Actual fixed costs of $43,000 exceeded budgeted fixed costs by $4,500. Prepare Cole's flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input blank.) Cole Industries Flexible Budget Performance Report For the Year Ended December 31, 2018 1 2 3 4 5…
1- Given the following information is the variance favorable or unfavorable? Flexible Budget Sales $100,000 Actual Sales $95,000 Group of answer choices Favorable/Unfavorable? 2- Given the following information is the variance favorable or unfavorable? Master Budget Variable Costs $100,000 Flexible Budget Variable Costs $95,000 Group of answer choices Favorable/Unfavorable? 3- Given the following information is the variance favorable or unfavorable? Master Budget Sales $100,000 Flexible Budget Sales $95,000 Group of answer choices Favorable/Unfavorable? 4- Given the following information is the variance favorable or unfavorable? Flexible Budget Fixed Costs $100,000 Actual Fixed Costs $95,000 Group of answer choices Favorable/Unfavorable?
You have asked your sales manager to explain why budgeted revenues for your division are below expectations. The budget indicated $1,039,500 of revenues based on a sales volume of 1,485,000 units. Sales records indicate that 1,500,400 product units were actually sold, but revenues were only $1,020,272. Calculate the sales price variance, the sale volume variance, and the total revenue variance. Sales price variance $ Unfavorable Sales volume variance $ Favorable Total revenue variance $ Unfavorable
NEKO Inc. wants to analyze its variances in its actual and budgeted operation. · There is no difference between the actual gross profit and budgeted gross profit.· The quantity of units sold is the same as the budgeted units sold.· Actual Units sold at budgeted sales price is P10,000· Actual Units sold at budgeted cost price is P8,000· Budgeted Sales is at P10,000 and the actual sales is P1,500 greater than the budgeted sales· Budgeted Cost of Goods Sold is at P8,000 and the actual Cost of Goods Sold is P1,200 greater than the budgeted Cost of Goods Sold.What is the sale price variance?
Information on Bustos Manufacturing Company’s overhead costs is as follows: Budgeted overhead based on standard direct-labor hours allowed P90,000 Budgeted overhead based on actual direct-labor hours allowed P89,000 Standard applied overhead P86,000 Actual overhead P92,000 What is the total overhead variance Group of answer choices P6,000 unfavorable P4,000 favorable P8,000 unfavorable P9,000 favorable
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? Enter VOLUME or RATE as your answer.
Bulldogs Inc. wants to analyze its variances in its actual and budgeted operation. · There is no difference between the actual gross profit and budgeted gross profit. · The quantity of units sold is the same as the budgeted units sold. · Actual Units sold at budgeted sales price is P10,000 · Actual Units sold at budgeted cost price is P8,000 · Budgeted Sales is at P10,000 and the actual sales is P1,500 greater than the budgeted sales · Budgeted Cost of Goods Sold is at P8,000 and the actual Cost of Goods Sold is P1,200 greater than the budgeted Cost of Goods Sold. What is the sale price variance?