Assignment
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 (below in table). 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. What is your analysis of the department manager's performance? Explain your reasoning
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Actual
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Original Budget
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Variance
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Procedures
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100,000
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120,000
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20,000 (Unfavorable)
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Variable Costs
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$1,200,000
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$1,320,000
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$120,000(Favorable)
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Fixed Costs
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600,000
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600,000
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__
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Total Costs
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$1,800,000
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$1,920,000
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$120,000(Favorable)
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Average Cost Per Unit
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$18.00
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$16.00
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Variable Cost Per Unit
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$12.00
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$11.00
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Fixed Cost Per Unit
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$6.00
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$5.00
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Paper must include an introduction, thesis, and conclusion.
The Paper:
• Must be at least three double-spaced pages in length, excluding the title and reference pages, and formatted according to APA style.
• Must include a title page with the following:
o Title of paper
o Student's name
o Course name and number
o Instructor's name
o Date submitted
• Must address the topic with critical thought.
• Must include the listed headings with the content required under each.
• Must use at least three scholarly sources that were published within the last five years
• Must include a separate reference page that is formatted according to APA style