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

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

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 13PA: Recompute the variances from the second Acme Inc. exercise using $0.0725 as the standard cost of the...

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Recompute the variances from the second Acme Inc. exercise using $0.0725 as the standard cost of the material and $14 as the standard labor cost per hour. How has your explanation of the variances changed?
At the end of the current fiscal year, the trial balance of Big Apple Inc. revealed the following debit (unfavorable) balances: Flexible-Budget Variance — $2,000 Production–Volume Variance — $75,000 What conclusions can be drawn from these two variances?
you 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
Zyan had a $2,000 favorable volume variance, a $7,000 unfavorable variable overhead spending variance, and $3,000 total underapplied overhead. The fixed overhead budget variance is? (kindly indicate if its unfavorable or favorable; two decimal places if any)
Fill in the blanks with the variances and whether they are favorable or unfavorable. Format your answers with the number and capitalized F/U with no space in between (ex: 200.5F). Do not enter a dollar sign. Enter 0 if there is no variance. Actual Spending Variance Flexible Activity Variance Budgeted Units 285 0 285 35 250 Revenues 6,450 6,697.5 5,875 Direct Labor 2,700 2,707.5 2,375 Direct Materials 790 769.5 675 Manufacturing Overhead 1,060 1,197 1,050 S&A Expenses 171 171 150 Income 1,729 1,852.5 1,625
QUESTIONS If the actual fixed costs total $ 167000 with the actual number of units produced equal to 120 , and the budgeted fixed costs were $ 162000 and the budgeted units to be produced are 150 , and the hours per unit are 4 and total hours are 600 . What is the fixed costs rate variance , production volume variance the flexible budget variance and the over / under allocated fixed manufacturing overhead variance ? Indicate whether the variances are favourable or unfavourable .
verify whether variances favorable of unfavorable: budgeted cost at actual volue would be 25344 (21.12*1200) and total variance to be explained is 2536 (unfavorable 27880-25344). what is the amount of variance that is attributed to the diffence between the budgeted and actual wage rate per hour. what is the amount of variance that is attributed to the change in labor productivity? what is the amount of variance that can be attributed tothe diffence between budgeted and actual volume budget actual wage rate per hour 16 17 fixed hours 320 320 variable hours per relative value unit (RVU) 1 1.1 Relative Value unite (RVUs) 1000 1200 total labor hours 1320 1640 labor cost 21120 27880 cost per RVU 21.12 23.23
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.
Can you help me interpret these results i)Revenue Variance, Price, and Volume Variance Revenue variance = Actual revenues – Static revenues = $2,200,000 - $1,9800,000 = $220,000 Price variance = Actual revenues – Flexible revenues =$2,2000,000 - $2,200,000 =$0 Volume variance = Flexible revenues – Static revenues =$2,200,000 - $1,980,000 = $220,000 ii) Cost Variance, Volume Variance and Management Variance Cost variance = Static cost - Actual cost =$1,350,000 -$1,625,000 = $-275,000 Volume = Static cost – Flexible costs = $1,350,000 - =$1,475,000 = $-125,000 Management variance = Flexible cost- Actual cost =$2,200,000 - 1,625,000 =$575,000 iii) Profit Variance Profit Variance= Actual Profit - Static Profit = 225,000 - 130,000 = 95,000 Revenue Variance = Actual Revenue - Static Revenue = 2, 200,000 - 1,980,000 = 220,000 Cost Variance = Static Cost - Actual Costs = 1,850,000 - 1,975,000 = (125,000) Can you help me interpret these results
The following information is available for Top Company: Actual Result Flexible budget variance Flexible budget Sales volume variance Static budget Static budget variance Unit sold 150 a) b) c) 120 d) Revenues 1800 e) f) g) 2160 h) Variable cost 1050 i) j) k) 1500 l) Contribution margin 750 m) n) o) 660 p) Fixed cost 350 q) r) s) 300 t) Operating income 400 u) v) w) 360 x) Required: Find the missing item (a) through (x). For the variances indicate whether it is favorable (F) or unfavorable (U).
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
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?