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Budgets of Brandon Surgery

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Budgets of Brandon Surgery;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 1,3001,300;Patient revenue $2,400 $2,600 $2,535;Salary expense $1,200 $1,000 $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.;b. Determine the variance for each line of the profit and loss statement in both dollar terms and percentage terms (Each line has a total variance, a volume variance, and a price variance [for revenues] and management variances [for expenses].;c. What do the part b results tell Brandon?s managers about the surgery centers operations for the quarter?

 

Paper#28679 | Written in 18-Jul-2015

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