Consider the following 2016 data for Newark Hospital (in millions of dollars) Simple Budget Flexible Budget Actual Results Revenues $4.7 $4.8 $4.5 Costs 4.1 4.1 4.2 Profit 0.6 0.7 0.3 a. Calculate...

70.2K

Verified Solution

Question

Finance

Consider the following 2016 data for Newark Hospital (inmillions of dollars)
Simple Budget Flexible Budget Actual Results
Revenues $4.7 $4.8 $4.5
Costs 4.1 4.1 4.2
Profit 0.6 0.7 0.3
a. Calculate and interpret the two profit variances
b. Calculate and interpret the two revenue variances.
c. Calculate and interpret the two cost variances.
d. how are the variances related
Answer a-d.

Answer & Explanation Solved by verified expert

4.3 Ratings (540 Votes)

a Profit variance in case of simple budget 06 03 03 unfavorable Profit variance in case of flexible budget 07 03 04 unfavorable Flexible budget calculates the profit at the actual output level using the budgeted costs and revenue per unit Simple budget does not consider the actual output but the budgeted output b Revenue variance in case of See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

Consider the following 2016 data for Newark Hospital (inmillions of dollars)Simple BudgetFlexible BudgetActual ResultsRevenues$4.7$4.8$4.5Costs4.14.14.2Profit0.60.70.3a. Calculate and interpret the two profit variancesb. Calculate and interpret the two revenue variances.c. Calculate and interpret the two cost variances.d. how are the variances relatedAnswer a-d.

Consider the following 2016 data for Newark Hospital (in millions of dollars) Simple Budget Flexible Budget Actual Results Revenues $4.7 $4.8 $4.5 Costs 4.1 4.1 4.2 Profit 0.6 0.7 0.3 a. Calculate...

70.2K

Verified Solution

Question

Finance

Answer & Explanation Solved by verified expert

Get Answers to Unlimited Questions

Membership Benefits:

Transcribed Image Text

Other questions asked by students

In sociology we say that culture is very important for human societies since culture gives us...

What is the error in this experiment Bill wants to know which skateboard wheels are...

Find the average value and the value s of c guaranteed by the mean value...

Determine the slope of the lin 3 2 and 8 6

Solve the system.y = x + 7x+7y=x+2The solutions are and.

What is the pros and cons of Quickbooks?What type of business would be able to...

Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has...

The first column is controllable costs while the second column is Favorable or Unfavorable ...

A company's stock had a required return of 14.75% last year, when the risk-free rate...

Gelb Company currently makes a key part for its main product. Making this part incurs...

Joan, who is single, made the following gifts this year: 2000 shares of RCM...

You are a Junior Credit Officer at BNSS Al Island ud a commercial bank Contracto...

	Simple Budget	Flexible Budget	Actual Results
Revenues	$4.7	$4.8	$4.5
Costs	4.1	4.1	4.2
Profit	0.6	0.7	0.3