• 100% Satisfaction Guarantee

F. Naz, Chartered Accountant
Category: Homework
Satisfied Customers: 4732
Experience:  Experience with chartered accountancy
20040807
F. Naz is online now

# 8.1 Consider the following 2007 data for Newark General Hospital

### Customer Question

8.1 Consider the following 2007 data for Newark General Hospital (in millions of dollars):
Static Budget Flexible Budget Actual Results

Revenues \$4.7 \$4.8 \$4.5

Costs 4.1 4.1 4.2

Profits 0.6 0.7 0.3

a Calculate and interpret the profit variance
b Calculate and interpret the revenue variance
c Calculate and interpret the cost variance
d Calculate and interpret the volume and price variances on the revenue
side
e Calculate and interpret the volume and management variances on the
cost side
f How are the variances calculated above related?

8.2 Here are the 2007revenuesfor the Wendover Group Practice Association
for four different budgets, in thousands of dollars
Static Budget Flexible(Enrollment/Utilization budget) Flexible (Enrollment) Budget Actual Results
\$425 \$200 \$180 \$300
a What does the budget data tell you about the nature of Wendover’s
patients: Are they capitated or fee-for-service? (Hint: See the note to
Figure 8.2
b Calculate and interpret the following variances
Revenue variance
Volume variance
Price variance

Enrollment variance

Utilization variance
8.3 Here are the budgets of Brandon Surgery Center for the most recent
historical quarter, in thousands of dollars:

Static flexible Actual

Number of Surgeries 1,200 1,300 1,300

Patient revenue \$2,400 \$2,600 \$2,535

Salary expense 1,200 1,300 1,365

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 management variance
c What do the Part b results tell Brandon’s managers about the surgery
center’s operations for the quarter?
Submitted: 2 years ago.
Category: Homework
Expert:  F. Naz replied 2 years ago.
You can view this answer by clicking here to Register or Login and paying \$3.
F. Naz, Chartered Accountant
Category: Homework
Satisfied Customers: 4732
Experience: Experience with chartered accountancy
Customer: replied 2 years ago.

Thank you for your help. I requested help with more questions, and I need help ASAP! can you help please

Expert:  F. Naz replied 2 years ago.
I have gone through the data for your posted question starting with number 2 and ending with number 14. Please clarify what should be the lenght of descriptive answer, specially for last three questions, and also mention your deadline, thanks.

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

### What Customers are Saying:

• Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
< Previous | Next >
• Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
• This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
• Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
• I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin Kernersville, NC
• Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther Woodstock, NY
• Thank you so much for taking your time and knowledge to support my concerns. Not only did you answer my questions, you even took it a step further with replying with more pertinent information I needed to know. Robin Elkton, Maryland
• He answered my question promptly and gave me accurate, detailed information. If all of your experts are half as good, you have a great thing going here. Diane Dallas, TX

• ### Manal Elkhoshkhany

#### Satisfied Customers:

4530
More than 5000 online tutoring sessions.
< Last | Next >

### Manal Elkhoshkhany

#### Satisfied Customers:

4530
More than 5000 online tutoring sessions.

### LogicPro

#### Satisfied Customers:

4395
Expert in Java C++ C C# VB Javascript Design SQL HTML

### Linda_us

#### Satisfied Customers:

3132
Post Graduate Diploma in Management (MBA)

### Chris M.

#### Satisfied Customers:

2486
Master's Degree, strong math and writing skills, experience in one-on-one tutoring (college English)

### F. Naz

#### Satisfied Customers:

2055
Experience with chartered accountancy

### Bizhelp

#### Satisfied Customers:

1884
Bachelors Degree and CPA with Accounting work experience

### Seanna

#### Satisfied Customers:

1781
3,000+ satisfied customers, all topics, A+ work