Isadore Hospital bases its budgets on patient-visits. The hospital's static budget for July appears below:
$\begin{array}{|l|r|}
\hline \text { Actual number of patient-visits } & 7,800 \
\hline \text { Supplies } & \$ 38,250 \
\hline \text { Laundry } & \$ 61,240 \
\hline \text { Salaries } & \$ 46,190 \
\hline \text { Occupancy costs } & \$ 65,650 \
\hline
\end{array}$

-What is the variance for laundry costs in the flexible budget performance report for the month?

Question

Isadore Hospital bases its budgets on patient-visits. The hospital's static budget for July appears below:
$\begin{array}{|l|r|}
\hline \text { Actual number of patient-visits } & 7,800 \
\hline \text { Supplies } & \$ 38,250 \
\hline \text { Laundry } & \$ 61,240 \
\hline \text { Salaries } & \$ 46,190 \
\hline \text { Occupancy costs } & \$ 65,650 \
\hline
\end{array}$

-What is the variance for laundry costs in the flexible budget performance report for the month?

Quizplus · Accepted Answer

The variance for laundry costs is unfavorable ($5,080 U) because the actual costs exceeded the budgeted costs, indicating that the hospital spent more on laundry than it had planned in its budget.

Isadore Hospital Bases Its Budgets on Patient-Visits -What Is the Variance for Laundry Costs in the Flexible