Question

Orginal Budget Budgeted Volume Budgeted Quantity Budgeted Price
1,000 40.00 $40,000.00 F
Flexible Budget Actual Value Budgeted Quantity Budgeted Price
1,200 41.67 $50,000.00 UF


Orginal Budget/Flexible Budget Budgeted Volume Budgeted Quantity Budgeted Price
1,000 $40.00 $40,000
Actual Value Budgeted Quantity Budgeted Price
1,200 $41.67 $50,004 UF



Problem:Project Budget was for 1,000 hours of part-time nurses services at $40.00 per hour, for
a total cost of $40,000. It was expected that these nurses' woruld treat 2,000 patients. After
the flu season was over, it turned out that the total spent on part-time nurses' was $50,000.
The nurses' worked 1,200 hours and 2,600 patients were treated. Calculate the varriances.
Was the overall result favorable or unfavorable?

Answer 1

Favorable