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 supplies 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 supplies costs in the flexible budget performance report for the month?

Quizplus · Accepted Answer

The variance for supplies costs in the flexible budget performance report is calculated by comparing the actual costs to the budgeted costs. Since the actual information or the flexible budget figures are not provided, it's impossible to accurately calculate or determine the variance for supplies costs. However, if "A) $2,370 U" is chosen as an answer, it suggests an unfavorable variance, meaning the actual costs were higher than budgeted. Without specific data, this choice is arbitrary and serves as a placeholder for the correct calculation method, which involves subtracting budgeted costs from actual costs to determine variance.

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