Analyze the variances in the following scenario: You are the nursing administrator for a medical group that expects a severe out break of the flu this winter. You hire additional staff to treat the patients and administer shots.

Analyze the variances in the following scenario: You are the nursing administrator for a medical group that expects a severe out break of the flu this winter. You hire additional staff to treat the patients and administer shots.

ANALYZING VARIANCES
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Analyze the variances in the following scenario: You are the nursing administrator for a medical group that expects a severe out break of the flu this winter. You hire additional staff to treat the patients and administer shots. Your special project budget wasfor 1,000 hours of part-time nurses’ services at $40 per hour, fora total cost of $40,000. It was expected that these nurses wouldadminister 400 flu shots and treat 1,600 flu patients. The medicalgroup typically charges $50 for a flu shot and $80 for treating aflu patient. Actually, the group had 1,200 patients who receivedthe flu shot and 1,400 who had the flu and received treatment. Onaverage, it was able to collect $55 per flu shot and $70 per flupatient. Compute the volume, mix, and price revenue variances. How did things turn out for the group considering just revenues? How did they turn out from a profit perspective? Use either theapproach from chapter 8 or from Appendix 8-A to solve. Clearlylabel the calculations of the required variances using Excel. Useformulas to calculate the three variances and format the cells toinsert a comma if there is more than three numbers and round to thenearest whole number.


 

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