Planning and budgeting

Nov 17th, 2015
Business Finance
Price: $10 USD

Question description

 Consider the following 2007 data for Newark General Hospital (in millions of dollars):

  • Static Budget: Revenues $4.7; Costs $4.1; Profit $0.6
  • Flexible Budget:  Revenues $4.8; Costs $4.1; Profit $0.7
  • Actual Results:  Revenues $4.5; Costs $4.2; Profit $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?

Tutor Answer

(Top Tutor) Mercy K
School: Boston College

Studypool has helped 1,244,100 students

Review from student
" Wow this is really good.... didn't expect it. Sweet!!!! "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1822 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors