The manager of the Minor Procedures Suites of the ABC Outpatient Center has received the a
The manager of the Minor Procedures Suites of the ABC Outpatient Center has received the actual results for the month of February 2015. See Exhibit 1.
Calculate the Revenue volume and rate variances and explain what may have caused some of the variances.
ABC Outpatient Center Minor Procedures Suites For the month of February 2015 Actual Budget Procedures 290 300 145,890 150,000 Revenues Expenses Variable labor 31,900 32,000 38,000 Variable other expenses 38.000 7,250 Fixed labor 7,500 23,000 23,000 Fixed other expenses 27,000 27,000 Allocated Indirect expenses 127,150 S 127,500 Total Expenses 18,740 22,500 Net Income Notes: Two physicians can do a total of 15 procedures per day and are paid $100 per hour each. Using a four week month or 20 work days and 8 hours per day 160 hours each per month Therefore, the budget is 160h X $100X 2 physicians $32,000