Budgetary Variance Model - 76838

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 Prepare an evaluation of the performance of the Radiology Department Manager for a hospital.
The service unit, or output, for this department is the number of procedures performed. A static budget was prepared at the beginning of the year. Examine that budget in relation to actual experience. The relevant data are included in Table  below . The department manager is pleased because the department has a favorable $120,000 cost variance. Evaluate the effectiveness claims of the manager using the budgetary variance mode described in Chapter 17. What is your analysis of the department manager’s performance? Explain your reasoning.

Your paper must include an introduction, thesis, and conclusion. Your paper must be four to five double-spaced pages in length (excluding title and reference pages) and formatted according to APA style . Utilize three scholarly and/or peer-reviewed sources (excluding the course text) that were published within the last five years. Cite your sources within the text of your paper and provide complete references for each source used on the reference page


 Actual         original budget         variance

Procedures                      100,000                 120,000                    20,000 (unfavorable)

variable costs                  $1,200,000            $1,320,000              $120,000 (favorable)

fixed costs                        600,000                  600,000                    -

total costs                         $1,800,000            $1,920,000              $120,000 (favorable)

average cost per unit       $18.00                   $16.00

variable cost per unit       $12.00                    $11.00

fixed cost per unit             $6.00                      $5.00



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