Problem 1: What dollar amount of the total variance is attributed to Enrollment Variance?

Problem 2: What dollar effect did the increased admission rate have on cost?

Problem 3: The intensity of care delivered dropped from a budgeted case mix of 0.90 to an actual case mix of 0.85. What dollar effect did this have on actual costs?

Problem 4: Costs per case increased to $4,900 from a budgeted value of $4,750. This increased actual total costs by what amount?

Problem 5: Using the information in the table below, calculate the amount of the unfavorable rate variance. Then select the letter from the list below that shows the correct answer.

a) $400,000

b) $570,000

c) $970,000

d) $600,000

e) cannot calculate with given information

Problem 6: Using the information in the table below, determine how much of the supplies variance is due to a change in volume. Then select the letter from the list below that shows the correct answer.

BudgetedActualVariance

Volume1,0001,100100

Supplies$10,000$12,750$2,750

Fixed Labour$20,000$22,250$2,250

a) $ 900
b) $1,000
c) $1,050
d) $1,250
e) $1,500