Question 1 (of 8) value: 2.00 points Hettinger Hospital bases Its budgets on pat

Question

Question 1 (of 8) value: 2.00 points Hettinger Hospital bases Its budgets on patlent-visits. The hospital's static budget for March appears below 9,400 Budgeted number of patlent-visits Budgeted variable costs: Supplies(@$9.50 per patlent-visit) $ 89,300 Laundry (@ $9.20 per patient-visit) Total variable cost Budgeted fixed costs: Wages and salaries Occupancy costs Total fixed cost Total cost 86,480 175,780 99,740 107740 207480 $383,260 The total variable cost at the activity level of 9,500 patient-visits per month should be: O $209,810 O $177650 O $207480 o $175,780

Explanation / Answer

Answer 1-c. $8,050 (U) Material Quantity Variance = (SQ - AQ) X SR SQ = 2 Pounds X 4,500 Units = 9,000 Pounds Material Quantity Variance = (9,000 Pounds - 10,150 Pounds) X $7 Material Quantity Variance = $8,050 (U) Answer 2-a. $404 (F) Labor Rate Variance = (SR - AR) X AH AR = $66,796 / 2,800 Hrs = $23.86 (Approx.) Labor Rate Variance = ($24 - $23.86) X 2,800 Hrs Labor Rate Variance = $404 (F) Answer 3-d. $33,000 (F) Material Price Variance = (SR - AR) X AQ Purchased Material Price Variance = ($5 - $2.80) X 15,000 Pounds Material Price Variance = $33,000 (F)

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