The following information has been prepared for a home


The following information has been prepared for a home health agency.
budget actual
wage rate per hour $16.00 $17.00
fixed hour 320 320
variable hours per related value unit 1.0 1.1
relative value unites 1000 1200
total labor hours 1320 1640
labor cost $12120 $27880
cost per RUV $2112 $2323

Budgeted costs at actual volume would be $25,344 ($21.12 × 1,200), and the total variance to be explained is $2,536 Unfavorable ($27,880 - $25,344). Be sure to specify whether the variance is favorable or unfavorable.

What is the amount of variance that can be attributed to the difference between budgeted and actual volume?

 

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Finance Basics: The following information has been prepared for a home
Reference No:- TGS0626584

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