Variance Analysis Suture Self is a health care service ?rm which provides health care services and e

Are you pressed for time and haven’t started working on your assignment yet? Would you like to buy an assignment? Use our custom writing services for better grades. Even if your deadline is approaching fast, our writers can handle your task right when you need it.

Order a Similar Paper Order a Different Paper

Variance Analysis Suture Self is a health care service ?rm which provides health care services and education In January
of 2017, Mrs Terry, a philanthropist, paid for all of Suture Self’s rent for the year, which had previously
been their only ?xed cost (Le FOH is ignored in this question Yay} In order to demonstrate all the
karma Mrs Terry had garnered, Suture Self started tracking their costs in order to observe and
hopefully improve their operations In February (which has 28 days for the record}, the 10 full time
employees recorded the following costs per day: Costs and activity in February Cost per day
Direct materials (gauze, sutures, etc) @ 250$/ patient $50,000 / day
Number of patients 200 patients / day
Direct Labor ($20 / hour @ 80 hrs / day) $1,600 I day
Variable Overhead (how-to-sew pamphlets, etc) @ $50 / patient $10,000 / day In March (which has 31 days, again for the record), the employees decided to implement some cost
saving efforts, by trying to convince their patients to use more generic drugs, which they believed
would reduce their material costs In general they felt like their efforts were successful Also in March, one of the employees fell sick and had to miss work, causing some of the other
employees to fill in and charge overtime This was concerning to them, as they worried this labor
overage would end up undoing all their material-cost-saving efforts So, with chagrin, they closed their
books for the month of March, and recorded the following total costs: Costs and activity in March Total cost for March
Direct materials $1,500,000
Number of patients 6200 patients
Direct Labor $55,000 Total Direct Labor Hours 2500 hours
Variable Overhead $321,000 Suture Se|f uses fu|| absorption actual costing (not that it matters here), and allocates variable
overhead on the basis of number of patients (same as as Direct Materials} For the following questions, variances should be calculated comparing March’s Actual numbers to
February Hint: think of days as the ‘units’ under consideration in the variance analysis

If you were Mrs Terry, would you be pleased or displeased with the employees overall efforts in March compared to February? Discuss in two sentences or fewer, citing the variance numbers you derived to support your argument (Note: you can assume the aforementioned sickness was through no fault of the employees)

Most students find it hard to finish papers at some point in their studies. If it ever happens to you, don’t get desperate—we have a service for every writing emergency! Whether you’re stuck with a problem, equation, or a piece of creative writing, we will definitely come to your rescue. Fill in the order form with the details of your paper. Write your personal instructions so we can meet your expectations.

Order a Similar Paper Order a Different Paper