Cost variance Questions

Cost variance Questions

Question
	

Questions for cost variance etc.

2007 data for a hospital in New York:

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

Please answer the following:

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?