Here are the budgets of Brandon Surgery Center for the most recent historical quarter (in thousands Show more Here are the budgets of Brandon Surgery Center for the most recent historical quarter (in thousands of dollars):
Here are the budgets of Brandon Surgery Center for the most recent historical quarter (in thousands Show more Here are the budgets of Brandon Surgery Center for the most recent historical quarter (in thousands of dollars):
Static Flexible Actual Number of Surgeries 1200 1300 1300 Patient Revenue $2400 $2600 $2535 Salary Expense 1200 1300 1365 Non-Salary Expense 600 650 585 Profit $600 $650 $585 The center assumes that all revenues and costs are variable and hence tied directly to patient volume. A. Explain how each amount in the flexible budget was calculated. (Hint: Examine the static budget to determine the relationship of each budget line to volume.) B. Determine the variances for each line of the profit and loss statement both in dollar terms and in percentage terms. (Hint: Each line has a total variance a volume variance and a price variance for revenues and management variance for expenses.) C. What do the Part B results tell Brandons managers about the surgery centers operations for the quarter? Show less
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