Number of visits Patient Revenue Variable Costs Supplies Salary Expense Marketing Exp. Other Expenses Total Variable Costs Contribution Margin Static Budget 18,000 $1,440,000 216,000 302,400 270,000 100,800 889,200 550,800 Flexible Budget Actual Results 19,000 $1,482,000 223,820 327,750 283,100 109,250 943,920 538,080

Managerial Accounting: The Cornerstone of Business Decision-Making
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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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Number of visits
Patient Revenue
Variable Costs
Supplies
Salary Expense
Marketing Exp.
Other Expenses
Total Variable Costs
Contribution Margin
Melrose Hospital
Static
Budget
18,000
$1,440,000
216,000
302,400
270,000
100,800
889,200
550,800
Flexible
Budget
Actual
Results
19,000
$1,482,000
223,820
327,750
283,100
109,250
943,920
538,080
Transcribed Image Text:Number of visits Patient Revenue Variable Costs Supplies Salary Expense Marketing Exp. Other Expenses Total Variable Costs Contribution Margin Melrose Hospital Static Budget 18,000 $1,440,000 216,000 302,400 270,000 100,800 889,200 550,800 Flexible Budget Actual Results 19,000 $1,482,000 223,820 327,750 283,100 109,250 943,920 538,080
Fixed Costs
Rent
Other
Total Fixed Costs
Net Income
a)
201,600
90,000
291,600
$ 259,200
210,000
85,000
295,000
$ 243,080
In the above table, construct a flexible budget for Melrose Hospital.
Transcribed Image Text:Fixed Costs Rent Other Total Fixed Costs Net Income a) 201,600 90,000 291,600 $ 259,200 210,000 85,000 295,000 $ 243,080 In the above table, construct a flexible budget for Melrose Hospital.
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b. Calculate the profit variance

c. Calculate the total revenue variance.      

d) Calculate the revenue volume variance.      

e) Calculate the revenue price variance.    

  f) Calculate the total cost variance. 

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