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Description: 1) Determine the variances between the planned and actual budgets2.)Determine what variance is due to change in volume and what variance is due to change inrates. Givens:Patient volume42,00045,000Patient revenues$12,600,000$15,300,000Revenue per visi

Business

Accounting

1) Determine the variances between the planned and actual budgets 2.)Determine what variance is due to change in volume and what variance is due to change in rates.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter17: Business Tax Credits And The Alternative Minimum Tax

Section: Chapter Questions

Problem 4CE

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

Topic Video

Question

1) Determine the variances between the planned and actual budgets

2.)Determine what variance is due to change in volume and what variance is due to change in
rates.

Givens:
Patient volume
42,000
45,000
Patient revenues
$12,600,000
$15,300,000
Revenue per visit
$300
$340

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